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Question
A wholesaler in apples claims that only 4% of the apples supplied by him are defective. A random sample of 600 apples contained 36 defective apples. Calculate the standard error concerning of good apples
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Solution
Sample size = 600
Number of success = 600 – 36
= 564
Sample proportion p = `564/600` = 0.94
= 600
Population proportion (p) = probability of getting good apple
= 96%
= `96/100` .......{∵ 4% of the apples 100 are defective}
P = 0.96
Q = 1 – p = 1 – 0.96
Q = 0.04
The S.E for a sample proporation is given by
S.E = `sqrt("PQ"/"N")`
= `sqrt(((0.96)(0.04))/600`
= `sqrt(0.0384/600`
= `sqrt(0.000064)`
∴ S.E = 0.008
Hence the standard error for sample proportion is S.E = 0.008
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