Question

Consider the probability that more than 43 out of 130 people have been in a car accident. Assume the probability that a given person has been in a car accident is 3%. Specify whether the normal curve can be used as an approximation to the binomial probability by verifying the necessary conditions.

Yes or No

Answer 1

Here, P(a person has been in a card accident), p = 0.03

q = 1 - p = 0.97

Sample size, n = 130

To use normal approximation to binomial, the following conditions must be met are, np 5 and nq 5

Here, np = 130 x 0.03 = 3.9

np < 5

Therefore, normal curve cannot be used as an approximation to the binomial.

Ans: No