Normal Approximation: Binomial

01Normal Approximation: Binomial

Approximation Conditions

Decide when a normal approximation is suitable and recognise its limits.

Replace a discrete shape with a smooth curve

A binomial distribution can be approximated by a normal distribution when the number of trials nn is large and the success probability pp is sufficiently close to 0.50.5. The binomial shape is then reasonably symmetric and bell-shaped.

Both conditions matter. A small number of trials leaves a coarse set of possible counts, while pp near 00 or 11 can produce a strongly skewed distribution that a symmetric curve represents poorly.

Suitable candidate

X∼B(200,0.4)X\sim\mathrm B(200,0.4) has many trials and a success probability reasonably close to 0.50.5.

Questionable candidate

W∼B(8,0.05)W\sim\mathrm B(8,0.05) has few trials and a success probability near zero. A normal approximation is not appropriate.

A normal model makes interval probabilities and inverse probability calculations convenient, but the answer remains an approximation.

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