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Normal Approximations to Binomial Distributions Premature babies are those born more than 3 weeks early. Newsweek (May 16, 1988) reported that 10% of the live births in the U.S. are premature. Suppose that 250 live births are randomly selected and that the number X of the “preemies” is determined. What is the probability that there are between 15 and 30 preemies, inclusive? 1) Find this probability using the binomial distribution. 2) What is the mean and standard deviation of the above distribution? 3) If we were to graph a histogram for the above binomial distribution, what shape do you think it will have? 4) Input the following in your calculator. Graph: histogram L1: seq(x,x,0,45) xlist: L1 L2: binomialpdf(250,.1,L1) freq: L2 Set window: xmin:-0.5 xmax: 45 xscl: 1 ymin:0 ymax:0.2 yscl:1 5) What do you notice about the shape? Input Y1: normalpdf(x, µ, σ) using the mean and standard deviation for the binomial distribution above. Normal distributions can be used to estimate probabilities for binomial distributions when: 1) the probability of success is close to .5 or 2) n is sufficiently large Rule: if n is large enough, then np > 10 & n(1 –p) > 10 Since a continuous distribution is used to estimate the probabilities of a discrete distribution, a continuity correction is used to make the discrete values similar to continuous values. ( 0.5 to the discrete values) 6) Use a normal distribution with the binomial mean and standard deviation above to estimate the probability that between 15 & 30 preemies, inclusive, are born in the 250 randomly selected babies. Binomial written as P (15 < X < 30) Normal (w/continuity correction) P (14.5 < X < 30.5) = ________________ 7) How does the answer in question 6 compare to the answer in question 1? 8) What is the probability that less than 20 preemies are born out of the 250 babies? Binomial Normal P(X < 20) 9) What is the probability that at least 30 preemies are born out of the 250 babies? Binomial Normal P(X > 30) Since P(preemie) = .1 which is not close to .5, is n large enough? 10) What is the probability that less than 35 preemies but more than 20 preemies are born out of the 250 babies? Binomial Normal P(20 < X < 35) Why 10? Normal distributions extend infinitely in both directions; however, binomial distributions are between 0 and n. If we use a normal distribution to estimate a binomial distribution, we must cut off the tails of the normal distribution. This is OK if the mean of the normal distribution (which we use the mean of the binomial) is at least three standard deviations (3σ) from 0 and from n. We require: Or As binomial: Square: Simplify: Since (1 - p) < 1: 3 0 3 np 3 np 1 p n 2 p 2 9np 1 p np 91 p np 9 Therefore, we say the np should be at least 10 and n (1 – p) should be at least 10. Why is the continuity correction .5? Think about how discrete histograms are made. Each bar is centered over the discrete values. The bar for “1” actually goes from 0.5 to 1.5 & the bar for “2” goes from 1.5 to 2.5. Therefore, by adding or subtracting .5 from the discrete values, you find the actually width of the bars that you need to estimate with the normal curve.