A Required Condition for Using the Normal Approximation to the Binomial

question 77

True/False

A required condition for using the normal approximation to the binomial in testing the difference between two population proportions is that n₁p₁ $\ge$ 30 and n₂p₂ $\ge$ 30.

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Definitions:

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date.

Bond B

A reference to a specific bond investment, often denoted for classification or tracking purposes.

Current Yield

The annual income (interest or dividends) divided by the current price of the security, often used in assessing bonds and other fixed-income investments.

5 ½% Bond

A bond that pays a 5.5% interest rate to its holders, typically annually or semi-annually.