The normal approximation to the binomial test with and without a continuity correction is evaluated in terms of control of Type I errors and power. The normal approximations are evaluated as robust ...

Where \(X\) is a normally distributed random variable with mean \(\mu\) and standard deviation \(\sigma\). The peak of the curve occurs at \(x=\mu\), and the spread ...

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

An approximation for negative binomial sums involving a minimum of arithmetic is presented. Because of the relationship between negative binomial sums and regular binomial sums the approximation can ...