1. Draw 100 random samples from a binomial distribution with parameters n = 10 and p =...

Question:

1. Draw 100 random samples from a binomial distribution with parameters n = 10 and p = .4. Consider an approximation to this distribution by a normal distribution with mean = np = 4 and variance = npq = 2.4. Draw 100 random samples from the normal approximation. Plot the two frequency distributions on the same graph, and compare the results. Do you think the normal approximation is adequate here? 

2. Answer the question in Problem 5.75 for a binomial distribution with parameters n = 20 and p = .4 and the corresponding normal approximation. 

3. Answer the question in Problem 5.75 for a binomial distribution with parameters n = 50 and p = .4 and the corresponding 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...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: