Question: 16. Argue, based on the central limit theorem, that a Poisson random variable having mean will approximately have a normal distribution with mean and
16. Argue, based on the central limit theorem, that a Poisson random variable having mean λ will approximately have a normal distribution with mean and variance both equal to λ when λ is large. If X is Poisson with mean 100, compute the exact probability that X is less than or equal to 116 and compare it with its normal approximation both when a continuity correction is utilized and when it is not.
The convergence of the Poisson to the normal is indicated in Figure 6.5.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
