example on page 23, chapter 11

Discussion in 'SP8' started by shana, Feb 21, 2014.

  1. shana

    shana Member

    Hi everyone,
    I am breaking my head trying to understand the example on pg 23 (same as the example on pg 19) - the problem is that on pg 19, P=0.0015 and on 23, q=0.0015 (prob should be Bin (10000,0.0015=p)
    can anyone elaborate?
    Also, why does the 600,000 on pg 24 changes to 612,500?
    How are you guys doing with this chapter in general? I find it very difficult
    Thanks
    Shana
     
    Last edited by a moderator: Feb 21, 2014
    shana, Feb 21, 2014
    #1
  2. Katherine Young

    Katherine Young ActEd Tutor Staff Member

    The convention with these sorts of questions is often to use q instead of p for the binomial probability (as a throwback to the notation for mortality q).

    To help you overcome this, the example explicitly tells you the formulae for skew(S).

    With regards to your query for page 24, the 612,500 includes the continuity correction.
     
    Katherine Young, Mar 9, 2014
    #2

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