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Normal Approximation for Binomial & Poisson

The document discusses approximating the binomial and Poisson distributions with the normal distribution. It states that the binomial distribution can be approximated by the normal distribution if the number of trials n is large and the probability of success p is small. The mean of the approximating normal distribution is np and the standard deviation is the square root of npq. When approximating a discrete distribution with a continuous one, a continuity correction must be included. An example problem asks to approximate the probability of getting at least 20 defective CDs out of 120 using the normal distribution, and explains it is convenient to do so when the number of trials is large.

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11 views1 page

Normal Approximation for Binomial & Poisson

The document discusses approximating the binomial and Poisson distributions with the normal distribution. It states that the binomial distribution can be approximated by the normal distribution if the number of trials n is large and the probability of success p is small. The mean of the approximating normal distribution is np and the standard deviation is the square root of npq. When approximating a discrete distribution with a continuous one, a continuity correction must be included. An example problem asks to approximate the probability of getting at least 20 defective CDs out of 120 using the normal distribution, and explains it is convenient to do so when the number of trials is large.

Uploaded by

bo
Copyright
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Normal Approximation to the Binomial and Poisson Distribution

Statistics 2
L.O.: To use the normal distribution to approximate the Binomial and Poisson distributions.

Recap: Approximating the Binomial Distribution by a Normal Distribution

A binomial distribution can be approximated by a Normal distribution if


(1) and (2)

If these conditions are met then a B(n, p) distribution can be approximated as N( , ).

Important: When we approximate a discrete distribution (such as the Binomial) by a continuous


distribution, we have to remember to include a …………………………

Examination Style Question


A large box contains many CDs, but previous experience indicates that 15% of the CDs in the box
are defective. 120 CDs are picked at random and removed. A normal distribution may be used to
estimate the probability that at least 20 out of the 120 CDs are defective. Give a reason why it may
be convenient to use a normal distribution to do this, and calculate the required estimate.

Solution:
Reason:

Let X = number of defective CDs.


Exact distribution for X is Approximate distribution is X ≈ N

We want P(X ≥ 20) =

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