The Normal Approximation to the Binomial Distribution (VCE SSCE Mathematical Methods): Flashcards

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The Normal Approximation to the Binomial Distribution
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Rule of thumb for normal approx to binomial

Both npnp and n(1p)n(1-p) must be > 5

Mean of normal approx to binomial

μ=np\mu = np

Std dev of normal approx to binomial

σ=np(1p)\sigma = \sqrt{np(1-p)}

When does normal approx work best?

nn large, pp not too close to 0 or 1

Why use normal approx to binomial?

Simplifies calculations for large nn

Two parameters of binomial distribution

nn (trials) and pp (probability of success)

Binomial shape as nn increases

Becomes more bell-shaped/symmetric

Binomial shape when nn large, pp close to 0.5

Symmetric

Binomial shape when nn small, pp near 0 or 1

Skewed (asymmetric)

When does binomial skewness become negligible?

When nn is large enough

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