Using the Central Limit Theorem, it is found that:
- The standard deviation is [tex]s = \sqrt{\frac{0.95(0.05)}{250} + \frac{0.72(0.28)}{250}}[/tex].
Central Limit Theorem
- It states that for a proportion p in a sample of size n, the sampling distribution of sample proportions has mean [tex]p[/tex] and standard deviation [tex]s = \sqrt{\frac{p(1 - p)}{n}}[/tex]
- When two variables are subtracted, the mean is the subtraction of the means, while the standard deviation is the square root of the sum of the variances.
In 2006, 95% of new cars in the US came with a spare tire, with a sample of 250, hence:
[tex]p_1 = 0.95, s_1 = \sqrt{\frac{0.95(0.05)}{250}}[/tex]
In 2017, 72% of new cars in the US came with a spare tire, with a sample of 250, hence:
[tex]p_2 = 0.72, s_2 = \sqrt{\frac{0.72(0.28)}{250}}[/tex]
Hence, for the distribution of differences:
[tex]p = p_1 - p_2 = 0.95 - 0.72 = 0.23[/tex]
[tex]s = \sqrt{s_1^2 + s_2^2} = \sqrt{\frac{0.95(0.05)}{250} + \frac{0.72(0.28)}{250}}[/tex]
To learn more about the Central Limit Theorem, you can take a look at https://brainly.com/question/16695444