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For a large, top-rated corporation, 94% of employees said the corporation is a great place to work. Suppose that we will take a random sample of 7 employees. Let p̂ represent the proportion of employees from the sample who said the corporation is a great place to work. Consider the sampling distribution of the sample proportion p̂. Find the standard deviation (σ) of the sampling distribution of the sample proportion p̂. Round your answer to two decimal places.

Question

For a large, top-rated corporation, 94% of employees said the corporation is a great place to work. Suppose that we will take a random sample of 7 employees. Let p̂ represent the proportion of employees from the sample who said the corporation is a great place to work. Consider the sampling distribution of the sample proportion p̂. Find the standard deviation (σ) of the sampling distribution of the sample proportion p̂. Round your answer to two decimal places.

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Solution

The standard deviation of the sampling distribution of the sample proportion (σ) can be calculated using the formula:

σ = sqrt[ P(1 - P) / n ]

where: P is the proportion of the population that has the characteristic of interest (in this case, the proportion of employees who said the corporation is a great place to work, which is 0.94), and n is the size of the sample (in this case, 7).

Substituting the given values into the formula, we get:

σ = sqrt[ 0.94(1 - 0.94) / 7 ]

Solving this equation will give us the standard deviation of the sampling distribution of the sample proportion.

Let's calculate it:

σ = sqrt[ 0.94 * 0.06 / 7 ] σ = sqrt[ 0.0564 / 7 ] σ = sqrt[ 0.008057142857142857 ] σ = 0.08976

Rounding to two decimal places, the standard deviation (σ) of the sampling distribution of the sample proportion p̂ is 0.09.

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