For which binomial distribution would a Poisson approximation be unacceptable?
A)n = 30, π = 0.02
B)n = 50, π = 0.03
C)n = 200, π = 0.10
D)n = 500, π = 0.01

Question

Quizplus · Accepted Answer

The Poisson approximation to the binomial distribution is generally considered acceptable if n is large and π is small, with the product nπ (mean of the binomial distribution) not too large. In option C, n = 200 and π = 0.10, which does not meet the criteria for a small π as well as the product nπ = 20, which can be considered too large for an ideal Poisson approximation.

For Which Binomial Distribution Would a Poisson Approximation Be Unacceptable