Dartmouth Distribution Warehouse makes deliveries of a large number of products to its customers. It is known that 78% of all the orders it receives from its customers are delivered on time. Let o be the proportion of orders in a random sample of 100 that are delivered on time. Find the probability that the value of P will be less than 0.81

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Answer:

The probability that the value of P will be less than 0.81 is 0.7642.

Step-by-step explanation:

According to the Central limit theorem, if from an unknown population large samples of sizes n > 30, are selected and the sample proportion for each sample is computed then the sampling distribution of sample proportion follows a Normal distribution.

The mean of this sampling distribution of sample proportion is:

 [tex]\mu_{\hat p}=p[/tex]

The standard deviation of this sampling distribution of sample proportion is:

[tex]\sigma_{\hat p}=\sqrt{\frac{p(1-p)}{n}}[/tex]

Given:

n = 100

p = 0.78

Since n = 100 > 30, according to the central limit theorem the sampling distribution of sample proportion follows a Normal distribution.

[tex]\hat p\sim N(\mu_{\hat p}=0.78, \sigma_{\hat p}=0.0414)[/tex]

Compute the value of [tex]P(\hat p<0.81)[/tex] as follows:

[tex]P(\hat p<0.81)=P(\frac{\hat p-\mu_{\hat p}}{\sigma_{\hat p}}<\frac{0.81-0.78}{0.0414})[/tex]

                  [tex]=P(Z<0.72)\\=0.76424\\\approx0.7642[/tex]

*Use a z-table for the probability.

Thus, the probability that the value of P will be less than 0.81 is 0.7642.