Question

In: Statistics and Probability

Consider the probability that more than 43 out of 130 people have been in a car...

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

Solutions

Expert Solution

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


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