Hii all, Ch.12 page 13- Can anyone clarify when to add or subtract continuity correction. Although I know it for probabilities ( ch.8 ) but in hypothesis testing, how do we know whether to add or subtract it? Clarify giving reference to qus. 12.9 since continuity correction is subtracted in it. Thanks
Sir, i saw that thread but i am still confused.! If we have 70 successes out 0f 100(i.e. p hat=0.7) how we determine we need P(X>=0.7) or P(X<= 0.7)??
Your p-value is always towards the extreme ends of the distribution. Since 70 is bigger than 60, we are doing P(X>=70) as that takes us towards the extreme end. So this will be 69.5. A rule of thumb is always do the continuity correction towards the mean (in this case towards 60).
