This preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentThis preview has intentionally blurred sections. Sign up to view the full version.
View Full DocumentThis preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: Business Statistics Exercise A normally distributed random variable X has a mean of 10 and a standard deviation of 5. Find the following probabilities. (a) P(10 < X < 12) (b) P(X > 14.2) (c) P(5 < X < 12.5) (d) P(4 < X < 14) Business Statistics When n is large and value of p is not too close to 0 or 1, we can approximate the binomial probability distribution by using a normal distribution with That is, if n is large, X ∼ Bin(n, p) is approximated by X ∗ ∼ N(np, npq) Continuity Correction Using the normal approximation, we need to do continuity correction. Given that X is a binomial random variable, X ∼ Bin(n, p) . Let c is the number of success, The Normal Approximation to the Binomial Probability Distribution...
View
Full
Document
This note was uploaded on 01/01/2010 for the course ISOM ISOM111 taught by Professor Anthonychan during the Spring '09 term at HKUST.
 Spring '09
 AnthonyChan

Click to edit the document details