If the number n of non-zero sample observations is large,then the sign test is based on the normal approximation to the binomial with mean μ = 0.5n and variance σ² = 0.25n.

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Quizplus · Accepted Answer

This is true as the normal approximation to the binomial can be used when the sample size is sufficiently large, n > 20, and the continuity correction is used to adjust for the discrete nature of the binomial distribution. The mean is μ = 0.5n and the variance is σ^2 = np(1-p) = 0.25n, where p=0.5 is the probability of success (one-tailed test).

If the Number N of Non-Zero Sample Observations Is Large,then