The Environmental Protection Agency (EPA) sets standards for environmental emiss

Question

The Environmental Protection Agency (EPA) sets standards for environmental emissions from hazardous substances. The EPS suggested that radon gas levels exceeding 4 picocurues per liter (pc/l) are associated with increased risk of lung cancer. A real estate developer owns 60 buildings in Phoenix and measurements indicate that 3 of the buildings have radon levels in excess of 4 pc/l.

A.) Give an estimate of , the proportion of buildings in the city having radon levels that exceed the EPA guidlines. In other words, find p-hat.

B.) If in fact = 0.04, is it reasonable to assume that the sampling distribution of p-hat, the sample proportion, is approximately normal? If not, what is the smallest sample size required so that the sampling distribution of p-hat is approxamately normal? Please explain.

Explanation / Answer

a) p-hat = 3/ 60 = 0.05

b)

standard deviation: (0.05*0.95) / 60 = 7.91x10^-4

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