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.

---

Definitions:

Forecast Error

The difference between the actual outcomes and the predictions made by forecasting models.

Expected Profit

The projected earnings calculated by assessing potential revenues minus anticipated costs.

Product Availability

The extent to which products are in stock and accessible for purchase by customers, directly impacting sales and customer satisfaction.

Inventory

The total amount of goods or materials that a company or business has in stock, waiting to be sold or used.