Engineering Statistics ECIV 2305

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Engineering Statistics ECIV 2305 Section 5.3 Approximating Distributions with the Normal Distribution

Introduction A very useful property of the normal distribution is that it provides good approximations to the probability values of certain other distributions In these special cases the cdf of a rather complicated distribution can be related to the cdf of a normal distribution that can be easily evaluated. ۲

The Normal Approximation to the Binomial Distribution The normal distribution can be used to approximate the binomial distribution (under certain conditions) Why do we need such approximation? It is much easier to use the normal distribution Let s start with X~B(n, p) We know that E(X) = np, and Var(X) = np(1-p) The distribution of X can be approximated by a normal distribution with the same mean and variance. i.e. X~B(n, p) Y~N(np, np(1-p)) ۳

Accuracy of this approximation The accuracy of this approximation improves as the parameter n of the binomial distribution increases. For a given n, the accuracy decreases as the success probability p becomes close to zero or one. A general rule: The approximation is reasonable as long as both: np 5 and n(1 p) 5 ٤

Illustrative Example: (page 240) Suppose that X ~ B(16, 0.5). a) Draw the pmf of X b) Check whether the distribution of X can be approximated by a normal distribution. c) If the answer to part b is yes, find the mean and variance of the normal distribution. d) Compute P(X 5) using the B(16, 0.5) distribution e) Compute P(X 5) using the normal approximation f) Compute the probability that the binomial distribution takes a value between 8 and 11. ٥

illustrative example: (page 240) Comparison of the pmf of a B(16, 0.5) and the pdf of N(8, 4) ٦

illustrative example: (page 240) It is interesting to compute some probability values of the B(16, 0.5) and N(8, 4) distributions to see how well they compare. The probability that the binomial distribution takes a value no larger than 5 is ۷

۸

illustrative example: (page 240) ۹

۱۰

۱۱

In Conclusion: The probability values of a B(n, p) distribution can be approximated by those of a N(np, np(1 p )) distribution using the following: ( ) x + 0.5 np P X x Φ ( ) np 1 p and P ( X x) x 1 Φ 0.5 np np ( 1 p) Again, these approximations work well as long as both np 5 and n(1 p) 5 ۱۲

Example: (page 242) A fair coin is tossed 100 times. What is the probability of obtaining between 45 and 55 heads? It is obvious that the number of heads obtained is a binomial random variable; X ~ B(100, 0.5). P(45 X 55) = P(X=45) + P(X=46) + --- + P(X=55) which is tedious to calculate. A more convenient approach is to use the normal approximation. First we need to check if the normal approximation works well. --- --- --- ۱۳

example: (page 242) Consequently, in 100 coin tosses there is a probability of about 0.73 that the proportion of heads is between 0.45 and 0.55. ۱٤

۱٥

۱٦

Example: Milk Container Contents (page 247) Recall that there is a probability of 0.261 that a milk container is underweight. The number of underweight containers X in a box of 20 containers has a B(20, 0.261) a) Can we use the normal approximation? b) Find the probability that a box contains no more than three underweight containers using both the binomial distribution and the normal approximation. c) Suppose that 25 boxes of milk are delivered to a supermarket. What is the probability that at least 150 containers are underweight? ۱۷

example: Milk Container Contents (page 247) ۱۸

The probability that at least 150 out of the 500 milk containers are underweight can then be calculated to be ۱۹

example: Milk Container Contents (page 247) ۲۰

Example: Cattle Inoculations (page 248) A particular animal vaccine has a probability of 0.0005 of provoking a serious adverse reaction when given to an animal. Suppose that this vaccine will be administered to 500,000 head of cattle. Assuming that X is a random variable representing the number of animals that will suffer an adverse reaction. a) What is the expectation and variance of X? b) Use the normal approximation to compute an interval of three standard deviations about the mean value? c) Comment on the result obtained in part a. ۲۱

example: Cattle Inoculations (page 248) ۲۲

The Central Limit Theorem Recall from Section 2.6 that if X 1, X 2,, X n is a sequence of independent random variables each with an expectation μ and a variance of σ 2, then the average X = then X 1 + X 2 E( X ) +... + X n n = µ and Var( X ) = And recall from section 5.2 that if X i ~ N (μ, σ 2 ), then 2 σ X ~ N µ, n The central limit theorem provides an important extension to these results by stating that: σ n 2 ۲۳ X

The Central Limit Theorem Regardless of the actual distribution of the individual random variables X i, the distribution of their average X is closely approximated by a N (μ, σ 2 /n) distribution. The accuracy of this approximation improves as n increases and the average is taken over more random variables. A general rule is that the approximation is adequate as long as n 30. 2 σ Also, from section 5.2 notice that if X ~ N µ, 2 n then X + X + + X ~ N nµ nσ 1 2 n, ( ) ۲٤

The central limit theorem is a very important theorem since it explains why many naturally occurring phenomena are observed to have distributions similar to the normal distribution, since they may be composed of many smaller random events. ۲٥

Example: Glass Sheet Flaws (page 248) Recall that the number of flaws in a glass sheet has a Poisson distribution with a parameter value λ = 0.5. a) What is the distribution of the total number of flaws X in a 100 sheets of glass? b) What is the probability that there are fewer than 40 flaws in a 100 sheets of glass? c) Calculate the probability that the average number of flaws is between 0.45 and 0.55. ۲٦

example: Glass Sheet Flaws (page 248) ۲۷

example: Glass Sheet Flaws (page 248) The central limit theorem indicates that the average number of flaws per sheet in 100 sheets of glass, X, has a distribution that can be approximated by a ۲۸

Notes on the Glass Sheet Flaws Problem The key point in these probability calculations is that even though the number of flaws in an individual sheet of glass follows a Poisson distribution, the central limit theorem indicates that the probability calculations concerning the total number or average number of flaws in 100 sheets of glass can be found using the normal distribution. ۲۹

Example: Pearl Oyster Farming (page 249) Recall that there is a probability of 0.6 that an oyster produces a pearl with a diameter of at least 4mm, which is consequently of a commercial size. a) How many oysters does an oyster farmer need to farm in order to be 99% confident of having at least 1000 pearls of commercial value? b) Assume that pearl has an expected diameter of 5mm and variance of 8.33. If a farmer collected 1050 pearls, compute the interval over which a farmer can be 99.7% confident of having an average pearl diameter lying within this interval. ۳۰

example: Pearl Oyster Farming (page 249) ۳۱

example: Pearl Oyster Farming (page 249) ۳۲