Use the Normal model to approximate the Binomial.
-According to the Census Bureau, 68% of Americans owned their own home in 2003.
A local real estate office wants to see if this is the case for its area. The office selects a
Random sample of 200 people to estimate the percentage who own their own homes. The
Standard deviation of the Normal model used to approximate this distribution is
A) 136
B) 64
C) 43.52
D) 6.597
E) 2.365

Question

Quizplus · Accepted Answer

The standard deviation for a binomial distribution can be approximated using the formula √(np(1-p)), where n is the sample size and p is the probability of success. Here, n = 200 and p = 0.68, so the standard deviation is √(200 * 0.68 * 0.32) ≈ 6.597.

Use the Normal Model to Approximate the Binomial