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Question

A bag containing 10,000 beads of assorted colors is purchased from a craft store. To estimate the percent of red beads in the bag, a sample of beads is selected at random. The percent of red beads in the bag was estimated to be 15%, with an associated margin of error of 2%. If r is the actual number of red beads in the bag, which of the following is most plausible?

  1. r > 1,700
  2. 1,300 < r < 1,700
  3. 200 < r < 1,500
  4. r < 1,300

The correct answer is: 1,300 < r < 1,700


    HINT :- add and subtract the error percentage to the 15% so that the beads lie between 15 - error % (minimum) and 15 + error %(maximum)
    r is the actual no.of read beads
    Given percentage of read beads is 15%
    Error percentage is 2% .
    Percentage lies between 15 - 2 to 15 + 2 i.e 13 to 17.
    So the 13 % of total < actual no.of read beads <   17% of total .
    13 % of 10,000  <  r  < 17% of 10,000.
    ∴ 1,300  <  r  < 1,700

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