In order to see what happens when the normal approximation is improperly used, consider the binomial distribution

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In order to see what happens when the normal approximation is improperly used, consider the binomial distribution with n = 15 and p = 0.05. Since np = 0.75, the rule of thumb (np > 5 and nq > 5) is not satisfied. Using the binomial tables, find the probability of one or fewer successes and compare this with the normal approximation.
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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Elementary Statistics

ISBN: 9780538733502

11th Edition

Authors: Robert R. Johnson, Patricia J. Kuby

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