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Elementary Statistics and Inference 22S:025 or 7P:025 Lecture 24 1 Elementary Statistics and Inference 22S:025 or 7P:025 Chapter 18 (cont.) 2 Chapter 18 (cont.) E. The Scope of the Normal Approximation The probability sums for tickets drawn from a box model also approaches a Normal Distribution as the number of draws with replacement increases increases. If the box differs from 50% of tickets with one value, and 50% with a different value – we need more draws. (See page 319) 3 1 Chapter 18 (cont.) Suppose 1 10 9 1 3 SD = ⋅ = 10 10 10 avg = 9 0 1 1 4 Chapter 18 (cont.) Note the approximation of sums as the number of draws increases – the approximation to the Normal Distribution gets better as the number of draws increases. 5 Chapter 18 (cont.) 6 2 Chapter 18 (cont.) The normal approximation works for sums from any box model – note example on page 321. 7 Chapter 18 (cont.) 8 Chapter 18 (cont.) Average of the box= SD of the box = 1+ 2 + 3 =2 3 (1 - 2) 2 + ( 2 − 2) 2 + (3 − 2) 2 1+1 2 = = 3 3 3 SD of the box = .67 E ( sum) = n ⋅ avg of the box = (25)(2) = 50 SE ( sum ) = n ⋅ SD of the box = 25 .67 = 4.09 9 3 Chapter 18 (cont.) The sum is approximated by the Normal Distribution even if the box with the tickets is unusual. 10 Chapter 18 (cont.) Note the approximation to the Normal Distribution as the number of draws increases. 11 Chapter 18 (cont.) 12 4 Chapter 18 (cont.) Exercise Set C – (pp. 324-325) 2 – (p. 324) A biased coin is tossed 10 times and has one chance in 10 off landing l di heads. h d It iis ttossed d 400 times. ti E Estimate ti t the chance of obtaining 40 heads. Because the number of tosses is large, even though the chances of obtaining a head is small – the Normal Approximation applies. 13 Chapter 18 (cont.) 1 1 9 0 (1×1 + 9 × 0) = 1 10 10 1 9 3 SD of the box = (1 - 0) × = = .30 10 10 10 avg of the box = ⎛1⎞ E (number of Heads) = n ⋅ avg of the box = (400)⎜ ⎟ = 40 ⎝ 10 ⎠ SE (number of Heads) = n ⋅ SD of the box = 400 (.3) = 6 14 Chapter 18 (cont.) SE=6 39.5 40.5 M=40 -.083 .083 Number of Heads X − Mean Z= SE Area between ±Z=.083 ~6% 15 5 Chapter 18 (cont.) F. Central Limit Theorem Review Exercises – (pp. 327-329) #1, 2, 3, 4, 5, 8, 9, 10, 11 16 17 18 6