Business statistic question. When do we use Binomial and the other "continous probabilties" formula?

Business statistic question. When do we use Binomial and the other "continous probabilties" formula?

Binomial= nCx (π)sqr X (1-π) sqr <(n-x)>

continous probabilities formula= p(x> X bar -μ / sd)

from wat i know, if the question given n π x we will use either d 1st formula or d 2nd 1.

so how to differentiate when to use either 1 formula?

Is it, if (nπ) > 5 and n(1-π) > 5 then we use d continous probabilties formula??

2 Answers

  • Anonymous
    1 decade ago
    Favorite Answer

    In fact, the conitnuous probability function is less accurate than the binomial equation.

    However, when there is a large number of outcomes to be calculated at the same time, it becomes impractical to use the binomial function which becomes a very long calculation indeed.

    It is hence better to use the continuous prob function which approximates the exact binomial.


    The (nπ) > 5 and n(1-π) > 5 are here only a check for us to know that we can use the continuous prob function instead of another function which is the Poisson.

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