Question

a large company knows that 7% of their employees are paid sales commissions as part of their compensation. the director of human resources is going to take a random sample of 25 employees to complete a survey about compensation. what do we know about the shape of the sampling distribution of the sample proportion of employees who are paid commission?

Answer 1

First, we determine the most likely number of persons out of the 25 employees that are to paid sales commissions as part of their compensation. This can be done by multiplying the decimal equivalent of 7% and 25 employees. Doing so will give us an answer of 1.75 or 2 persons. This shows that the shape of the sampling distribution is not very much equally distributed.