Given a binomial random variable with n = 100 and p = 0.7, estimate the Pr[X ≤ 80]
Solution:
Given that,
P = 0.7
1 - P = 0.3
n = 100
Here,
BIN ( n , P ) that is , BIN (100 , 0.7)
then,
n*p = 100*0.7 = 70 > 5
n(1- P) = 100*0.3 = 30 > 5
According to normal approximation binomial,
X
Normal
Mean =
= n*P = 100*0.70 = 70
Standard deviation =
=
n*p*(1-p)
=
100*0.70*0.30 =
21
We using countinuity correction factor
P( X
a ) = P(X < a + 0.5)
P(x < 80.5) = P((x -
) /
< (80.5 - 70 ) /
21)
= P(z < 2.29)
Probability = 0.9890
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