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June 2021 p53 q7
3282
In the whole of Arka there are a large number of households. A survey showed that 35% of households in Arka have no broadband service.
(ii) 120 households in Arka are chosen at random.
Use an approximation to find the probability that more than 32 of these households have no broadband service.
Solution
Let the random variable \(X\) represent the number of households with no broadband service out of 120. \(X\) follows a binomial distribution with parameters \(n = 120\) and \(p = 0.35\).
To approximate, we use a normal distribution with mean \(\mu = np = 120 \times 0.35 = 42\) and variance \(\sigma^2 = np(1-p) = 120 \times 0.35 \times 0.65 = 27.3\).
We apply a continuity correction to approximate \(P(X > 32)\) as \(P(X > 32.5)\).