When can I use a normal distribution to approximate a binomial distribution?
Why do we use approximations?
If there are a large number of values for a binomial distribution there could be a lot of calculations involved and it is inefficient to work with the binomial distribution
These days calculators can calculate binomial probabilities so approximations are no longer necessary
However it is easier to work with a normal distribution
You can calculate the probability of a range of values quickly
You can use the inverse normal distribution function (most calculators don't have an inverse binomial distribution function)
In your exam you must use the formula and not a calculator to find binomial probabilities so you are limited to small values of n
What are continuity corrections?
The binomial distribution is discrete and the normal distribution is continuous
A continuity correction takes this into account when using a normal approximation
The probability being found will need to be changed from a discrete variable, X, to a continuous variable, XN
How do I apply continuity corrections?
Think about what is largest/smallest integer that can be included in the inequality for the discrete distribution and then find its upper/lower bound
How do I approximate a probability?
STEP 1: Find the mean and variance of the approximating distribution
Worked Example
Exam Tip
In the exam, the question will often tell you to use a normal approximation but sometimes you will have to recognise that you should do so for yourself. Look for the conditions mentioned in this revision note, n is large, p is close to 0.5, np > 5 and nq > 5.