hw5 - Economics 506-Sections M & M1 Home work 5 Due on...

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Home work 5 Due on November 8, 2011 at the beginning of the class A. Make an excel file. The purpose of this exercise is to illustrate central limit theorem. Assume you have a Bernoulli experiment in which the probability of “success” is 0.4. You repeat the experiment 30 times. Define random variable Y as the number of success in 30 trials. We know Y has Binomial distribution. According to one version of central limit theorem the random variable ) 1 ( p np np Y Z - - = should have standard normal distribution as n approaches infinity. Put ‘your name’, ‘ECON 506’, ‘UIN’ and ‘HW5’ in cells A1 to A4. Write down ‘ Binomial ’, ‘ p ’ and ‘ n ’ in cell A6, A7 and A8. Use the (last digit of your UIN / 10) as p , i.e., if the digit is 4, use 0.4. Put the value you just found and ‘30’ in cells B7 and B8. In cells C6 and D6 write ‘mean’ and ‘SD’. In C7 and D7 calculate the mean and standard deviation of the binomial.
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This note was uploaded on 01/27/2012 for the course ECON 506 taught by Professor Staff during the Spring '08 term at University of Illinois, Urbana Champaign.

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