The exact probability is less than probability using Poisson distribution is less than probability using normal distribution.
Given that,
10 balls, numbered from 1 to 10, are in an urn. We selected a 111 person sample with replacement.
We have to calculate the probability that the number one appears in the sample no more than three times. Compare the outcomes with the precise probability using both the normal and the Poisson approximations 0.00327556.
We know that,
Let
X = number of times that 1 appears in a sample
Probability of getting 1 =1/10=0.1
Then X congruent to Binomial (111,0.1)
Now,
If we approximately X is Poisson distribution with parameter
λ = 111 × 0.1 = 11.1
Then
P(X≤3)=∑x=0 to 3 e⁻¹¹°¹(11.1)ˣ/x!
P(X≤3)= 0.00327556
If we approximate X by Normal distribution with mean
μ = 111 × 0.1 = 11.1
σ = √111 × 0.1 × 0.9 = 3.160696 then
P(X≤3) = 0.005192688
Exact probability is
P(X≤3) = 0.003275558
Hence the answer is, The exact probability is less than probability using Poisson distribution is less than probability using normal distribution.
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