Binomial Approximation
1. **Stating the problem:**
Andy believes 72% of his customers are satisfied. From a sample of 92, we want probabilities of satisfaction numbers.
Let $X$ = number of satisfied customers, $X \sim \text{Binomial}(n=92, p=0.72)$.
2. **Approximate Binomial with Normal distribution:**
Mean $\mu = np = 92 \times 0.72 = 66.24$.
Standard deviation $\sigma = \sqrt{np(1-p)} = \sqrt{92 \times 0.72 \times 0.28} = \sqrt{18.5472} \approx 4.3064$.
3. Use Normal approximation with continuity correction.
(a) Probability $P(X < 67)$ = $P(X \leq 66)$ with correction, evaluate $P(Y \leq 66.5)$ where $Y$ is normal.
Calculate Z-score:
$$Z = \frac{66.5 - 66.24}{4.3064} = \frac{0.26}{4.3064} \approx 0.0604$$
Using standard normal table, $P(Z \leq 0.0604) \approx 0.5241$.
(b) Probability $P(X \geq 67)$ = $1 - P(X \leq 66)$, so
$$P(X \geq 67) = 1 - 0.5241 = 0.4759$$
(c) Sample proportion range 70% to 77%:
Convert to number satisfied:
Lower bound $= 0.70 \times 92 = 64.4$, upper bound $= 0.77 \times 92 = 70.84$.
Using continuity correction: Find $P(64.5 \leq X \leq 70.84+0.5=71.34)$
Calculate Z-scores:
$$Z_1 = \frac{64.5 - 66.24}{4.3064} = \frac{-1.74}{4.3064} \approx -0.4043$$
$$Z_2 = \frac{71.34 - 66.24}{4.3064} = \frac{5.1}{4.3064} \approx 1.1846$$
From the standard normal table:
$P(Z \leq -0.4043) \approx 0.3429$, $P(Z \leq 1.1846) \approx 0.8814$.
So,
$$P(64.5 \leq X \leq 71.34) = 0.8814 - 0.3429 = 0.5385$$
**Final answers (rounded to 4 decimal places):**
(a) 0.5241
(b) 0.4759
(c) 0.5385