One of the Reasons That a Correction for Continuity Adjustment

question 34

True/False

One of the reasons that a correction for continuity adjustment is needed when approximating the binomial distribution with a normal distribution is because a random variable having a binomial distribution can have only a specified value while a random variable having a normal distribution can take on any values within an interval around that specified value.

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Definitions:

Numerically Measurable

Refers to data or quantities that can be quantified and expressed in numerical terms, facilitating analysis and comparison.

Utility Analysis

An economic technique for measuring the satisfaction or benefit derived by consumers from consuming goods and services.

Indifference Curve

A graph showing different combinations of two goods that provide equal satisfaction and utility to a consumer.

Convex

In geometry and economics, convex refers to a shape or function that curves outward or has a bulging shape, often indicating a relationship where marginal effects increase over a range.