Showing topic: Hypothesis testing with normal approximation to binomial distribution
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State the key points about: Hypothesis testing with normal approximation to binomial distribution
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Answer
• When n is large and p is not too close to 0 or 1, a binomial distribution can be approximated by a normal distribution.
• Conditions for approximation: np>5 and nq>5 (where q=1−p).
• Mean: μ=np; Variance: σ2=np(1−p).
• A <strong>continuity correction</strong> must be applied when converting from a discrete (binomial) to a continuous (normal) distribution.
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Hypothesis testing with normal approximation to binomial distribution
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