Chapter 13, Problem 4E

Character recognition An automatic character recognition device can successfully read about 85% of handwritten credit card applications. To estimate what might happen when this device reads a stack of applications, the company did a simulation using samples of size 20, 50, 75, and 100. For each sample size, they simulated 1000 samples with success rate p = 0.85 and constructed the histogram of the 1000 sample proportions, shown here. Explain what these histograms show about the sampling distribution model for sample proportions. Be sure to talk about shape, center, and spread.