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StatisticsQ&A LibraryRoughly 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).Question

Asked Jan 17, 2020

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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).

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,

Step 3

The Poisson distribution is approximated with parameter π=*np*.

The...

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