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A department shop has determined that 65% of all their sales came from online shopping during the pandemic. A random sample of 75 sales is selected.

a) The sample finds that out of the 75 transactions, 51 were from online shopping. If the parameter we want to estimate is the proportion of sales coming from online shopping, find the value of the parameter and its point estimate based on this survey.

b) What type of probability distribution will be used to determine the probabilities of this particular sample proportion?
Why? Justify your answer.

c) What are the values of the mean and standard error of this distribution?

d) What is the probability that in a sample of 75 sales, at least 60 of them were from online shopping?

Give answers in excel formula please?

1 Answer

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Final answer:

The parameter we want to estimate is the proportion of sales coming from online shopping. The value of the parameter is 65% and the point estimate based on this survey is 68%. The probability distribution used to determine the probabilities of this sample proportion is the binomial distribution. The mean of this distribution is 48.75 and the standard error is 3.858. The probability that in a sample of 75 sales, at least 60 of them were from online shopping is 0.9024.

Step-by-step explanation:

a) The parameter we want to estimate is the proportion of sales coming from online shopping. The value of the parameter is 65% (given) and the point estimate based on this survey is 51/75 = 0.68 or 68%.

b) The probability distribution that will be used to determine the probabilities of this particular sample proportion is the binomial distribution. This is because we are dealing with a fixed number of trials (75 sales) with only two possible outcomes (online shopping or not online shopping) and each trial has the same probability of success (65% or 0.65).

c) The mean of this distribution is obtained by multiplying the sample size (75) by the probability of success (0.65), so the mean is 75 * 0.65 = 48.75. The standard error of this distribution is the square root of (n * p * (1 - p)), so the standard error is sqrt(75 * 0.65 * (1 - 0.65)) = 3.858.

d) To calculate the probability that in a sample of 75 sales, at least 60 of them were from online shopping, you can use the following excel formula: =1-BINOM.DIST(59,75,0.65,TRUE) = 0.9024

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