A binomial distribution with parameters m and p can be approximated by...
Binomial Distribution and Poisson Distribution
Binomial Distribution:
The binomial distribution is a discrete probability distribution that describes the number of successes in a fixed number of independent trials, each with the same probability of success. Let X be the number of successes in n trials, then X has a binomial distribution with parameters n and p, denoted by X~B(n,p)
Poisson Distribution:
The Poisson distribution is a discrete probability distribution that describes the number of occurrences of a rare event within a fixed interval of time or space. Let X be the number of occurrences of the event in the interval, then X has a Poisson distribution with parameter λ, denoted by X~Pois(λ).
Approximation of Binomial Distribution by Poisson Distribution
When n is large and p is small, it is often difficult and time-consuming to compute binomial probabilities. In such cases, we can approximate the binomial distribution by a Poisson distribution with parameter λ = np.
The conditions under which the binomial distribution can be approximated by a Poisson distribution are:
1. n is large
2. p is small
3. np is finite
In such cases, the Poisson distribution provides a good approximation to the binomial distribution.
Applying these conditions to the given options:
a) Incorrect: Only m is given, we cannot conclude anything about p.
b) Incorrect: Only p is given, we cannot conclude anything about m.
c) Incorrect: Only m is given, we cannot conclude anything about p.
d) Correct: The condition np is finite is satisfied. Therefore, we can approximate the binomial distribution with parameters m and p by a Poisson distribution with parameter λ = np = mp.
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.