Normal Approximation. Contents. 1 Normal Approximation. 1.1 Introduction. Anthony Tanbakuchi Department of Mathematics Pima Community College



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Introductory Statistics Lectures Normal Approimation To the binomial distribution Department of Mathematics Pima Community College Redistribution of this material is prohibited without written permission of the author 2009 (Compile date: Tue May 19 14:49:54 2009) Contents 1 Normal Approimation 1 1.1 Introduction....... 1 1.2 The approimation... 2 Continuity correction.. 4 Eamples........ 4 1.3 Summary........ 6 1.4 Additional Eamples.. 6 1 Normal Approimation 1.1 Introduction Plot of binomial distribution with fied n = 20, varying p. 1

2 of 6 1.2 The approimation P binom (, n = 20, p = 0.05) P binom (, n = 20, p = 0.1) P binom() P binom() P binom (, n = 20, p = 0.5) P binom (, n = 20, p = 0.95) P binom() P binom() Sometimes the binomial has the same shape as the normal. 1.2 The approimation Definition 1.1 Normal distribution approimation of the binomial distribution. A binomial distribution can be approimated as a normal distribution when: np 5 and nq 5 (1) recall that a binomial random variable has: µ = np (2) σ = npq (3) Illustration of normal approimation Given a binomial distribution with n = 20 and p = 0.5 then np = nq = 10 5, therefore the approimation should be valid.

Normal Approimation 3 of 6 Normal Appro to Binom: n=20, p=0.5 0.00 0.05 0.10 0.15 binomial dist P() normal appro f() Thus, if np 5 and nq 5 we can use the normal distribution to approimately describe a binomial random variable. Question 1. If we use the normal distribution to approimate the binomial, can we find P ( = 10) with the normal distribution? Area under the normal distribution Given a binomial distribution with n = 20 and p = 0.5, find P ( = 10) using the normal approimation.

4 of 6 1.2 The approimation Normal Appro to Binom: n=20, p=0.5 0.12 0.14 0.16 0.18 shaded area has a width=1 binomial dist P() normal appro f() 9.0 9.5 10.0 10.5 11.0 11.5 12.0 P binom ( = 10) P norm (9.5 < < 10.5) CONTINUITY CORRECTION Definition 1.2 Continuity correction. When using the a continuous distribution to approimate a discrete distribution, adjust the boundaries of the area in question by 0.5. Eample 1. Eamples of how to use the continuity correction: P binom ( = 10) P norm (9.5 < < 10.5) P binom ( < 10) P norm ( < 9.5) P binom ( 10) P norm ( < 10.5) P binom (5 < 10) P norm (4.5 < < 9.5) Tip: Draw a number line, put an open or closed dot for the binomial boundaries, then adjust the boundaries to find the desired region on the normal. EXAMPLES Calculating with approimation Given a binomial distribution with n = 20 and p = 0.5, find P ( = 10) using the normal approimation. Since np and nq are 10, the approimation will be valid. To use the approimation, on the normal distribution we need to find P (9.5 < < 10.5) = F (10.5) F (9.5):

Normal Approimation 5 of 6 R: n = 20 R: p = 0. 5 R: q = 1 p R: mu = n p R: mu [ 1 ] 10 R: sigma = s q r t ( n p q ) R: sigma [ 1 ] 2. 2361 R: p. appro = pnorm ( 1 0. 5, mean = mu, sd = sigma ) + pnorm ( 9. 5, mean = mu, sd = sigma ) R: p. appro [ 1 ] 0.17694 Calculating with binomial Given a binomial distribution with n = 20 and p = 0.5, find P ( = 10) check the approimation using the binomial. Checking against binomial distribution: R: p = dbinom ( 1 0, n, p ) R: p [ 1 ] 0.17620 Thus p 0.177 using normal and p = 0.176 using the binomial. Eample 2. If we flip a fair coin 10,000 times, what is the probability of getting more than 5,100 heads? What we know R: n = 10000 R: p = 0. 5 R: q = 1 p R: mu = n p R: mu [ 1 ] 5000 R: sigma = s q r t ( n p q ) R: sigma [ 1 ] 50 Is the approimation valid? (yes) R: n p [ 1 ] 5000 R: n q [ 1 ] 5000 Find probability with approimation on the normal: P ( > 5100.5) = 1 F (5100.5): R: 1 pnorm ( 5 1 0 0. 5, mean = mu, sd = sigma ) [ 1 ] 0.022216 Eample 3. Check previous eample by using the binomial distribution: R: sum( dbinom ( 5 1 0 1 : 1 0 0 0 0, n, p ) ) [ 1 ] 0.022213

6 of 6 1.3 Summary 1.3 Summary Normal approimation to the binomial distribution Valid when np and nq 5. To use: 1. Calculate µ and σ for binomial. 2. Apply continuity correction (adjust boundaries by 0.5). 3. Use cumulative normal distribution pnorm(...) to find probability. Tip: Draw a number line, put an open or closed dot for the binomial boundaries, then adjust the boundaries to find the desired region on the normal. Although we can use the binomial distribution directly, we will use the normal approimation later for hypothesis testing. 1.4 Additional Eamples Eamples If a binomial distribution can be satisfactorily approimated using the normal distribution, write the following binomial probabilities in terms of the normal distribution: Question 2. P binom (2 < 5) Question 3. If a coin is flipped 100 times, what is the probability of observing more than 57 heads? Question 4. Would it be unusual to observe more than 57 heads when tossing a coin 100 times?