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Normal Approximation in Probability Distributions

The document discusses using the normal distribution to approximate the binomial and Poisson distributions when the sample size is large. It provides rules for when the normal approximation is acceptable and describes using a continuity correction of 0.5 when approximating discrete distributions with continuous distributions. Examples are given to demonstrate how to calculate probabilities using the normal approximation for binomial and Poisson distributions.

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Joshua Bautista
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207 views11 pages

Normal Approximation in Probability Distributions

The document discusses using the normal distribution to approximate the binomial and Poisson distributions when the sample size is large. It provides rules for when the normal approximation is acceptable and describes using a continuity correction of 0.5 when approximating discrete distributions with continuous distributions. Examples are given to demonstrate how to calculate probabilities using the normal approximation for binomial and Poisson distributions.

Uploaded by

Joshua Bautista
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
  • Continuous Probability Distribution
  • Normal Approximation to the Binomial
  • Examples for Binomial Approximation
  • Normal Approximation to the Poisson
  • Examples for Poisson Approximation
  • Seatwork

Continuous Probability

Distribution
Part 2
Normal Approximation to the Binomial
 If X is a binomial random variable with mean μ =
np and variance σ2 = npq, then the limiting form
of the distribution of
Normal Approximation to the Binomial

 It turns out that the normal distribution with


μ = np and
σ2 = np(1 − p) = npq
 not only provides a very accurate approximation to
the binomial distribution when n is large and p is
not extremely close to 0 or 1 but also provides a
fairly good approximation even when n is small and
p is reasonably close to 1/2.
Normal Approximation to the Binomial

A convenient rule is that such approximation is


acceptable when:

•n≥30
•np≥5
•n(1−p) ≥5
Normal Approximation to the Binomial

 Now, a correction is to be made to accommodate


the fact that a discrete distribution is being
approximated by a continuous distribution. The
correction

x +0.5 is called a continuity correction.


Normal Approximation to the Binomial and
Poisson
The 0.5 is either added or subtracted as a
continuity correction according to the form of the
of the probability statement:

[Link] 0.5 from X when P(X≥Xi) is required.


[Link] 0.5 from X when P(X<Xi) is required.
[Link] 0.5 to X when P(X≤Xi) is required.
[Link] 0.5 to X when P(X>Xi) is required
Examples
1. The probability that a patient recovers from a
rare blood disease is 0.4. If 100 people are known
to have contracted this disease, what is the
probability that fewer than 30 survive?
2. A multiple-choice quiz has 200 questions, each
with 4 possible answers of which only 1 is
correct. What is the probability that sheer
guesswork yields from 25 to 30 correct answers
for the 80 of the 200 problems about which the
student has no knowledge?
Normal Approximation to the Poisson

 When the mean λ of a poisson distribution is


relatively large, the normal probability
distribution can be used to approximate Poisson
probabilities. A convenient rule is that such
approximation is acceptable λ>20
 Themean and standard deviation of the
normalprobability distribution are based on
theexpected value and the variance of the
numberof events in a Poisson process.
Normal Approximation to the Poisson

 Mean is

 The standard deviation is


Examples
1. In a factory there are 45 accidents per year and
the number of accidents per year follows a
Poisson distribution. Use the normal
approximation to find the probability that there
are more than 50 accidents in a year.
2. The average number of calls for service
received by a machine repair department per
8 hours shift is 21. Determine the probability
that less than 25 calls will be received during
a randomly selected 8hour shift.
Seatwork
1. A coin is tossed 400 times. Use the normal
curve approximation to find the probability of
obtaining (a) between 185 and 210 heads
inclusive; (b) exactly 205 heads; (c) fewer
than 176 or more than 227 heads.
2. Cars arrive at the mall at a rate of 45 per
hour. Let’s assume that the process is a
Poisson random variable with λ = 47. Compute
the probability next hour of the number of
cars that arriving between 54 and 62.

Continuous Probability Distribution Part 2
Normal Approximation to the Binomial If X is a binomial random variable with mean μ = np and variance σ2 = npq, then the li
Normal Approximation to the Binomial It turns out that the normal distribution with μ = np and σ2 = np(1 − p) = npq not o
Normal Approximation to the Binomial A convenient rule is that such approximation is acceptable when: •n≥30 •np≥5 •n(1−p) ≥
Normal Approximation to the Binomial Now, a correction is to be made to accommodate the fact that a discrete distribution i
Normal Approximation to the Binomial and Poisson The 0.5 is either added or subtracted as a continuity correction according
Examples 1. The probability that a patient recovers from a rare blood disease is 0.4. If 100 people are known to have contr
Normal Approximation to the Poisson When the mean λ of a poisson distribution is relatively large, the normal probability
Normal Approximation to the Poisson Mean is The standard deviation is
Examples 1. In a factory there are 45 accidents per year and the number of accidents per year follows a Poisson distributio

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