Probability - Normal approx. to the Binomial - PowerPoint PPT Presentation

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Probability - Normal approx. to the Binomial

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So plot a few of these distributions for n=20 and pi=.1,.25,.5,.8; e.g. ... rules of thumb would say use this approximation only when npi 5 and n(1-pi) 5 ... – PowerPoint PPT presentation

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Title: Probability - Normal approx. to the Binomial


1
  • Probability - Normal approx. to the Binomial
  • Recall that if Y is B(n,pi), then
    P(Yy)dbinom(y,n,pi). So plot a few of these
    distributions for n20 and pi.1,.25,.5,.8 e.g.,
  • plot(020,dbinom(020,20,.1),typel)
  • from this you can see the approx. normality.
  • so what is the mean and s.d. of the approximating
    normal?? use the mean and s.d. of the Binomial
    meann(pi) sdsqrt(n(pi)(1-pi)). For the above
    example, mean2, s.d.1.341641
  • most rules of thumb would say use this
    approximation only when npigt5 and n(1-pi)gt5
  • but in an R world where we can compute exact
    values of all binomial distributions, the use of
    the normal approximation is of theoretical
    interest only in the context of inference
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