In Chapter 6, you will see that the normal distribution can sometimes be used to approximate the
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a. Consider a binomial distribution with n = 200 and p = 0.5.Calculate P(x ≤ 100).
b. What is the mean and standard deviation for the distribution you used in part a?
c. Using a normal distribution with the same mean and standard deviation you calculated in part b, calculate P(x ≤ 100).
d. Now calculate P(x ≤ 100.5) for the normal distribution. The extra 0.5 is added to provide a “continuity correction factor.”It compensates for the fact that the normal distribution is continuous (so P(x ≤ 100) = P(x < 100), for example), and the binomial distribution is not (P(x ≤ 100) ≠ P(x < 100)).How close are the binomial and normal probabilities now? Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
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Analyzing Data And Making Decisions Statistics For Business Microsoft Excel 2010 Updated
ISBN: 9780132924962
2nd Edition
Authors: Judith Skuce
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