Exercise

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?

Instructions

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.