Use the binomial distribution with n = 20 and = .5 to compare the accuracy of

Question:

Use the binomial distribution with n = 20 and π = .5 to compare the accuracy of the normal approximation to the binomial.
a. Compute the exact probabilities and corresponding normal approximations for y < 5.
b. The normal approximation can be improved slightly by taking P(y ≤ 4.5). Why should this help? Compare your results.
c. Compute the exact probabilities and corresponding normal approximations with the continuity correction for P(8 < y < 14).
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: