Newsweek (November 23, 1992) reported that 40% of all U.S. employees participate in “self-insurance” health plans (p = .40).
a. In a random sample of 100 employees, what is the approximate probability that at least half of those in the sample participate in such a plan?
b. Suppose you were told that at least 60 of the 100 employees in a sample from your state participated in such a plan. Would you think p = .40 for your state? Explain.