Insurance company records indicate that 10% of its policyholders file claims involving theft or robbery of personal property from their homes. Suppose a random sample of 400
Policyholders is selected. The standard deviation of the sampling distribution of the
Sample proportion of policyholders filing claims involving theft or robbery from their
Homes is
A) 0.000225
B) 0.25
C) 0.0455
D) 0.1667
E) 0.015

Question

Quizplus · Accepted Answer

The standard deviation of the sampling distribution of the sample proportion is calculated using the formula: sqrt[(p(1-p))/n], where p is the population proportion (0.10) and n is the sample size (400). This gives sqrt[(0.10 * 0.90) / 400] = 0.015.

Insurance Company Records Indicate That 10% of Its Policyholders File