Suppose an oil corporation has several thousand drilling sites available in an area of the North Sea. Exploratory wells were drilled in a simple random sample of 50 sites. In 20 of the drilled wells, they found an abundance of oil, and in the remaining 30, they did not. A hypothesis test was conducted to determine if these drillings had a higher success rate than previous exploratory drilling. The success rate of the corporation's prior exploratory drillings was 35%.
Which of the following statements are true? (Select all true statements)
A) Random: The random condition is not met because the sample size is small.
B) 10%: This condition is not met because
20 > 10% of n = 50.
C) 10%: This condition is met because
50 < 10% of all possible sites.
D) Large Counts: This condition is met because pno = 50(0.35) = 17.5
and n(I - Po) = 50(1 - 0.35) = 32.5 are both at least 10.
E) Large Counts: This condition is met because np = 20 and n(1 - f) = 30 are both at least 10.
F) Random: The random condition is met because the sample is a simple random sample of 50 sites.
