There are 50 different flavored candies in a large bag of 1300 candy beans. Eight of these flavors contain a green color. According to the company’s website, \(15\%\) of the candies in any given package are green.
You are going to collect a random sample of these candies and evaluate the company’s claim that \(15\%\) are green. Along the way, you are going to practice finding probabilities using a Binomial table of probabilities and a Normal (Z) table of probabilities.
One goal of this exercise is to explore features of the binomial probability distribution and eventually, to see how a Normal probability distribution can approximate a binomial distribution for a large enough sample size. The other goal is to use the expectation and standard deviation of random variables to characterize whether or not the observed proportions in a sample match up with the claims about the package contents from the candy company.
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Random variable \(X \sim Binom(n,p)\) and \(E(X) = np, \quad Var(X) = np(1-p)\). The model parameter is \(p=\) proportion of successes.
From a sample of size \(n\), we can derive the sample estimate \(\hat{p} = \frac{\text{number of green candies}}{n}\).
If \(n\) is large enough, then \(X \approx N(\mu = np, \sigma = \sqrt{np(1-p)})\).