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Principles of Economics
Principles of Economics
Gregory Mankiw 8th Edition
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Transcript

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00:01 Hello students, according to the given question we have to tell about the difference of binomial and normal distributions.
00:12 So here coming to the binomial distribution, so here the assumptions are here outcome that is success or failure and probably of x will be equal to x, the pdf is ncx p power x into 1 minus p whole power n minus x.
00:46 Here x values are from 0, 1 up to so on n terms 0 otherwise.
00:55 So this is the pdf of binomial.
01:01 So that means it has the finite sample.
01:04 Find it sample and here the mean value will be equal to mu that is equal to n into p and standard deviation sigma is equal to np into 1 minus p under the square root so this is about the binomial distribution now coming to normal distribution normal distribution so here x will follow non of mu and sigma square.
01:40 Here mu represents the mean value and sigma square represents the variance value.
01:47 So it is a continuous data.
01:53 So that means here it is a bell shaped symmetric distribution.
02:06 It can be known as gaussian distribution.
02:14 So this is about normal distribution.
02:16 Distribution.
02:18 Now we have to know about when normal approximation to binomial.
02:36 So here if n is large, then we can't use binomial because it is very difficult.
02:55 So in that cases, so normal normal approximation is used...
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