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6.6 NORMAL APPROXIMATION TO
                        ^ TO P
BINOMIAL DISTRIBUTION AND
DISTRIBUTION
       Chapter 6:
       Normal Curves and Sampling Distributions
Page 308 – 309
Normal Approximation to the Binomial
Distribution
    Under the conditions stated below, the normal
     distribution can be used to approximate the
     binomial distribution.
    Consider a binomial distribution where
     n = number of trials
     r = number of successes
     p = probability of success on a single trial
     q = 1 – p = probability of failure on a single trial
    If np > 5 and nq > 5, then r has a binomial distribution
     that is approximated by a normal distribution with
                  and
    Note: as n increases, the approximation becomes
     better
Page
Example 14 – Binomial Distribution            309
Graphs
     Notice that as n increases, the normal
                  approximation
      to the binomial distribution improves
Page
                                              311
Continuity Correction
   The normal distribution is for a continuous
    random variable. The binomial distribution is
    for a discrete random variable. So, in order to
    use the normal distribution to approximate the
    binomial distribution, we need to make a
    continuity correction.
How to Make the Continuity
Correction
      Convert the discrete random variable r
      (number of successes) to the continuous
      normal random variable x by doing the
      following:
 1.    If r is a left point of an interval, subtract 0.5 to
       obtain the corresponding normal variable x.
              x = r – 0.5
 2.    If r is a right point of an interval, ass 0.5 to
       obtain the corresponding normal variable x.
              x = r + 0.5
How to Make the Continuity
    Correction
 Example:
P(6 ≤ r ≤ 10) would be approximated by P(5.5 ≤ r ≤
  10.5)
Not in
                                                            Textbook!
How to Find Probabilities
Given a binomial distribution where
     n = number of trials
     r = number of successes
     p = probability of success on a single trial
     q = 1 – p = probability of failure on a single trial
     np > 5
     nq > 5


1.   Define what you are trying to find
2.   Make the continuity correction
3.   Convert to z scores Note in order to do this, you must find μ
                         and σ.
4.   Use the standard normal distribution to find the
     corresponding probabilities
Page
Example 15 – Normal                       310
Approximation
 The owner of a new apartment building must
 install 25 water heaters. From past experience
 in other apartment buildings, she knows that
 Quick Hot is a good brand. A Quick Hot heater
 is guaranteed for 5 years only, but from the
 owner’s past experience, she knows that the
 probability it will last 10 years is 0.25.
Example 15 – Normal
   Approximation
   a)   What is the probability that 8 or more of the 25
        water heaters will last at least 10 years? Define
        success to mean a water heater that lasts at least
        10 years.
Solution:                     We want:        = P(r≥7.5)
n = 25                        P(r≥8)
r = binomial random
variable
corresponding to the                             =
number                                           Normalcdf(.58, E99)
                                                 = .280957
of successes
                                                 ≈ .2810
p = 0.25
q = 0.75        The probability that 8 or more of the 25 water
np = 6.25       heaters will last at least 10 years is approximately
Page
Sampling Distributions for the                            ^
                                                        313
Proportion p
    Given
     n = number of binomial trials (fixed constant)
     r = number of successes
     p = probability of success on each trial
     q = 1 – p = probability of failure on each trial
    If np > 5 and nq > 5, then the random variable
           can be approximated by a normal random
     variable (x) with mean and standard deviation
Sampling Distributions for the                  ^
Proportion p
   The standard error for the distribution is the
    standard deviation
   We do not use a continuity correction for the
    distribution.
     is an unbiased estimator for p, the population
    proportion of success.
Page
Example 16 – Sampling Distribution                     ^
                                                     313
of p
    The annual crime rate in the Capital Hill
     neighborhood of Denver is 111 victims per 1000
     residents. This means that 111 out of 1000
     residents have been the victim of at least one
     crime. These crimes range from relatively minor
     crimes (stolen hubcaps or purse snatching) to
     major crimes (murder). The Arms is an apartment
     building in this neighborhood that has 50 year
     round residents. Suppose we view each of the n =
     50 residents as a binomial trial. The random
     variable r (which takes on values 0, 1, 2, . . . , 50)
     represents the number of victims of at least one
     crime in the next year.
Example 16 – Sampling Distribution^
of p
   a) What is the population probability p that a
      resident in the Capital Hill neighborhood will be
      the victim of a crime next year? What is the
      probability q that a resident will not be a
      victim?
Solution:
Example 16 – Sampling Distribution^
of p
  b)    Consider the random variable
        Can we approximate the distribution with a
       normal distribution? Explain.

Solution:



        Since both np and nq are greater than 5, we can
        approximate the distribution with a normal
        distribution.
Example 16 – Sampling Distribution^
of p
  c)   What are the mean and standard deviation for
       the distribution?

Solution:
Assignment
   Page 314
   #1 – 3, 5, 9, 13, 17 – 19, 21

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6.6 normal approx p hat

  • 1. 6.6 NORMAL APPROXIMATION TO ^ TO P BINOMIAL DISTRIBUTION AND DISTRIBUTION Chapter 6: Normal Curves and Sampling Distributions
  • 2. Page 308 – 309 Normal Approximation to the Binomial Distribution  Under the conditions stated below, the normal distribution can be used to approximate the binomial distribution.  Consider a binomial distribution where n = number of trials r = number of successes p = probability of success on a single trial q = 1 – p = probability of failure on a single trial  If np > 5 and nq > 5, then r has a binomial distribution that is approximated by a normal distribution with and  Note: as n increases, the approximation becomes better
  • 3. Page Example 14 – Binomial Distribution 309 Graphs Notice that as n increases, the normal approximation to the binomial distribution improves
  • 4. Page 311 Continuity Correction  The normal distribution is for a continuous random variable. The binomial distribution is for a discrete random variable. So, in order to use the normal distribution to approximate the binomial distribution, we need to make a continuity correction.
  • 5. How to Make the Continuity Correction Convert the discrete random variable r (number of successes) to the continuous normal random variable x by doing the following: 1. If r is a left point of an interval, subtract 0.5 to obtain the corresponding normal variable x. x = r – 0.5 2. If r is a right point of an interval, ass 0.5 to obtain the corresponding normal variable x. x = r + 0.5
  • 6. How to Make the Continuity Correction  Example: P(6 ≤ r ≤ 10) would be approximated by P(5.5 ≤ r ≤ 10.5)
  • 7. Not in Textbook! How to Find Probabilities Given a binomial distribution where n = number of trials r = number of successes p = probability of success on a single trial q = 1 – p = probability of failure on a single trial np > 5 nq > 5 1. Define what you are trying to find 2. Make the continuity correction 3. Convert to z scores Note in order to do this, you must find μ and σ. 4. Use the standard normal distribution to find the corresponding probabilities
  • 8. Page Example 15 – Normal 310 Approximation The owner of a new apartment building must install 25 water heaters. From past experience in other apartment buildings, she knows that Quick Hot is a good brand. A Quick Hot heater is guaranteed for 5 years only, but from the owner’s past experience, she knows that the probability it will last 10 years is 0.25.
  • 9. Example 15 – Normal Approximation a) What is the probability that 8 or more of the 25 water heaters will last at least 10 years? Define success to mean a water heater that lasts at least 10 years. Solution: We want: = P(r≥7.5) n = 25 P(r≥8) r = binomial random variable corresponding to the = number Normalcdf(.58, E99) = .280957 of successes ≈ .2810 p = 0.25 q = 0.75 The probability that 8 or more of the 25 water np = 6.25 heaters will last at least 10 years is approximately
  • 10. Page Sampling Distributions for the ^ 313 Proportion p  Given n = number of binomial trials (fixed constant) r = number of successes p = probability of success on each trial q = 1 – p = probability of failure on each trial  If np > 5 and nq > 5, then the random variable can be approximated by a normal random variable (x) with mean and standard deviation
  • 11. Sampling Distributions for the ^ Proportion p  The standard error for the distribution is the standard deviation  We do not use a continuity correction for the distribution.  is an unbiased estimator for p, the population proportion of success.
  • 12. Page Example 16 – Sampling Distribution ^ 313 of p  The annual crime rate in the Capital Hill neighborhood of Denver is 111 victims per 1000 residents. This means that 111 out of 1000 residents have been the victim of at least one crime. These crimes range from relatively minor crimes (stolen hubcaps or purse snatching) to major crimes (murder). The Arms is an apartment building in this neighborhood that has 50 year round residents. Suppose we view each of the n = 50 residents as a binomial trial. The random variable r (which takes on values 0, 1, 2, . . . , 50) represents the number of victims of at least one crime in the next year.
  • 13. Example 16 – Sampling Distribution^ of p a) What is the population probability p that a resident in the Capital Hill neighborhood will be the victim of a crime next year? What is the probability q that a resident will not be a victim? Solution:
  • 14. Example 16 – Sampling Distribution^ of p b) Consider the random variable Can we approximate the distribution with a normal distribution? Explain. Solution: Since both np and nq are greater than 5, we can approximate the distribution with a normal distribution.
  • 15. Example 16 – Sampling Distribution^ of p c) What are the mean and standard deviation for the distribution? Solution:
  • 16. Assignment  Page 314  #1 – 3, 5, 9, 13, 17 – 19, 21