Sept 2007 Q3 & Q4

Discussion in 'CT3' started by AliCat, Sep 11, 2010.

  1. AliCat

    AliCat Member

    Is there a reason why in the ASET solutions a continuity correction is applied in Q3 but not in Q4?
     
  2. DevonMatthews

    DevonMatthews Member

    Because for #3 the question states "fewer than 50 customers", when transformed to a normal distribution you can not have X<50 because this would include 50, so you need to use X<49.5 which would correspond to X<=49 for a binomial.

    For question #4 It is asking for a confidence interval so the problem of modelling a discrete distribution with a continuous one is of no consequence. If you don't understand continuity corrections I strongly suggest you re-read the relevant section in the notes.
     

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