Test of Independence
Main Idea
The Test of Independence checks to see if the distribution of p̂ is normal or not.
It states that the sampling distribution for p̂ is approximately normal if the population is significantly larger (ten times larger) than the sample size, and if the sample size (n) times the proportion (p) and the sample size times the complement of the proportion (1 - p) are both greater than 10.
p̂ ~ N ( p, \({\sqrt {pq}\over n }\) ) if... 1) N ≥ 10n and 2) np ≥ 10 and n(1-p) ≥ 10
*For more information on the sampling distribution of p̂, click here.