One of the Reasons That a Correction for Continuity Adjustment

question 162

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 the probability of getting a specific value of a random variable is zero with the normal distribution.

---

Definitions:

Financial Advantage

The benefit gained in financial terms, likely leading to improved profitability or reduced expenses.

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, indicating how much revenue is contributing to fixed expenses and profit.

Labor Hours

A measure of the amount of work or effort in terms of hours spent by workers in producing goods or providing services.

Profitable Use

The utilization of resources or assets in a way that generates a financial gain.