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14 January, 19:22

For which binomial distribution would a poisson approximation be acceptable?

a. n = 60, π = 0.08

Answers (1)
  1. G
    14 January, 23:11
    0
    Generally, when n is large, say >=20, and p is small, say <0.05, it would be safe to approximate with a Poisson distribution.

    However, the fact that np=4.8 <>20 (I prefer working with 30), can justify approximating with Poisson.

    So you see that when n is large, there is more tolerance.
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