Approximating Binomial with Normal

According to the Central Limit Theorem, the normal distribution can be used as an approximation to the binomial distribution, if the sample size is large enough.

If X is Binomial (n, p):

$$E(X) = np$$ $$Var(V) = np(1-p)$$

The approximate equivalent normal distribution is N[np,√(np(1-p))], provided np≥ 5 and n(1- p)≥ 5 (thumb rule).


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