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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...
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 Spring '09
 AnthonyChan

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