A large company knows that 7% of their employees are paid sales commissions as p

Question

A large company knows that 7% of their employees are paid sales commissions as part of their compensation. The director of human resources is going to take a random sample of 25 employees to complete a survey about compensation. What do we know about the shape of the sampling distribution of the sample proportion of employees who are paid commission?

Select one:

A) It will be very close to a normal distribution with a mean of 0.07.

B) It will be somewhat skewed to the right.

C) It will be very close to a normal distribution with a mean of 0.50.

D) It will be distinctly bimodal with a peak at 7% and another at 93%.

Explanation / Answer

Correct option is Option-D) It will be distinctly bimodal with a peak at 7% and another at 93%.

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