Assignment X4, Q4.5

Discussion in 'CT3' started by ALEX_AK, Mar 30, 2008.

  1. ALEX_AK

    ALEX_AK Member

    Hello,

    Is it correct if I just find

    P(X>=25)=(50C25)*0.4^24*0.6*25
    = 0.0405

    This is also the size of the test. Am I right? Isn't it faster doing it this way? Why must we use the Normal Approx as in the solution?
     
  2. Michael

    Michael Member

    From your formula it looks like you're calculating P(X=25), but the question is asking for P(X>=25)
    P(X>=25) = P(X=25) + P(X=26) + ... + P(X=50)

    You could calculate this using the probability function, but you'd need to calculate and sum all the individual probabilities, so it's quicker to use the normal approximation.
     

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