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Normal Approximation to Binomial

A particularly useful example of the Central Limit Theorem is when we are sampling from a 0-1 population. In this case, the number of 1's observed has the binomial distribution which is difficult to make calculations from. But notice that tex2html_wrap_inline2643 for the sample is in fact the sample proportion p and the Central Limit Theorem says that tex2html_wrap_inline2643 is approximately normal with mean equal to the mean of the 0-1 population (also known as tex2html_wrap_inline2703 , the proportion of 1's in the population) and variance tex2html_wrap_inline3695 . See the ``Z, t, Chi-square, F'' concept lab.



Jan Lethen
Wed Nov 13 16:20:46 CST 1996