Exercise 13. Estimating the probability of a specific error size

Assume you are in a practical situation and you don't know \(p\). Take a sample of size \(N=100\) and obtain a sample average of \(\bar{X} = 0.51\).

What is the CLT approximation for the probability that your error size is equal or larger than 0.01?

100 XP

Calculate the standard error of the sample average using the sqrt function.
Use pnorm twice to define the probabilities that a value will be less than -0.01 or greater than 0.01.
Combine these results to calculate the probability that the error size will be 0.01 or larger.