Asked Jan 17, 2020

Roughly speaking, you can use the Poisson probability formula to approximate binomial probabilities when n is large and p is small (i.e., near 0). Explain how to use the Poisson probability formula to approximate binomial probabilities when n is large and p is large (i.e., near 1).


Expert Answer

Step 1

Poisson probability formula to approximate binomial probabilities when n is large and p is large:

Step 2

The probability mass function for Binomial distribution is,

Statistics homework question answer, step 2, image 1
Step 3

The Poisson distribution is approximated with parameter π=np.



Statistics homework question answer, step 3, image 1

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