Write advantage of using normal approximation of binomial


An Internal Revenue Oversight Board survey found that 82% of taxpayers said that it was very important for the Internal Revenue Service (IRS) to ensure that high-income tax payers do not cheat on their tax returns (The Wall Street Journal, February 11, 2009).

a. For a sample of eight taxpayers, what is the probability that at least six taxpayers say that it is very important to ensure that high-income tax payers do not cheat on their tax returns? Use the binomial distribution probability function shown in Section 5.4 to answer this question.

b. For a sample of 80 taxpayers, what is the probability that at least 60 taxpayers say that it is very important to ensure that high-income tax payers do not cheat on their tax returns? Use the normal approximation of the binomial distribution to answer this question.

c. As the number of trails in a binomial distribution application becomes large, what is the advantage of using the normal approximation of the binomial distribution to compute probabilities?

Solution Preview :

Prepared by a verified Expert
Basic Statistics: Write advantage of using normal approximation of binomial
Reference No:- TGS0685453

Now Priced at $20 (50% Discount)

Recommended (91%)

Rated (4.3/5)