Table of contents
- 1. Intro to Stats and Collecting Data55m
- 2. Describing Data with Tables and Graphs1h 55m
- 3. Describing Data Numerically1h 45m
- 4. Probability2h 16m
- 5. Binomial Distribution & Discrete Random Variables2h 33m
- 6. Normal Distribution and Continuous Random Variables1h 38m
- 7. Sampling Distributions & Confidence Intervals: Mean1h 3m
- 8. Sampling Distributions & Confidence Intervals: Proportion1h 12m
- 9. Hypothesis Testing for One Sample1h 1m
- 10. Hypothesis Testing for Two Samples2h 8m
- 11. Correlation48m
- 12. Regression1h 4m
- 13. Chi-Square Tests & Goodness of Fit1h 20m
- 14. ANOVA1h 0m
6. Normal Distribution and Continuous Random Variables
Standard Normal Distribution
Problem 5.R.69c
Textbook Question
In Exercises 69 and 70, determine whether you can use a normal distribution to approximate the binomial distribution. If you can, use the normal distribution to approximate the indicated probabilities and sketch their graphs. If you cannot, explain why and use a binomial distribution to find the indicated probabilities.
A survey of U.S. adults found that 72% used a mobile device to manage their bank account at least once in the previous month. You randomly select 70 U.S. adults and ask whether they used a mobile device to manage their bank account at least once in the previous month. Find the probability that the number who have done so is (c) greater than 60.

1
Step 1: Verify if the normal distribution can be used to approximate the binomial distribution. For this, check the conditions: (a) The sample size (n) should be large, and (b) both np and n(1-p) should be greater than or equal to 5. Here, n = 70 and p = 0.72. Calculate np = 70 * 0.72 and n(1-p) = 70 * (1 - 0.72).
Step 2: If the conditions are satisfied, proceed to approximate the binomial distribution using the normal distribution. The mean (μ) and standard deviation (σ) of the binomial distribution are given by μ = np and σ = sqrt(np(1-p)). Calculate these values.
Step 3: To find the probability that the number of adults who used a mobile device to manage their bank account is greater than 60, apply the continuity correction. This means you will calculate the probability for X > 60.5 instead of X > 60.
Step 4: Standardize the value using the z-score formula: z = (X - μ) / σ, where X is the value of interest (60.5 in this case), μ is the mean, and σ is the standard deviation. Compute the z-score.
Step 5: Use the standard normal distribution table (or a calculator) to find the probability corresponding to the calculated z-score. Subtract this value from 1 to find the probability that X > 60.5. Sketch the graph of the normal distribution curve, marking the mean and the area representing the probability greater than 60.5.

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Key Concepts
Here are the essential concepts you must grasp in order to answer the question correctly.
Binomial Distribution
The binomial distribution models the number of successes in a fixed number of independent Bernoulli trials, each with the same probability of success. In this context, it applies to the survey of U.S. adults, where each adult either uses a mobile device to manage their bank account (success) or does not (failure). The parameters of the binomial distribution are the number of trials (n) and the probability of success (p).
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Mean & Standard Deviation of Binomial Distribution
Normal Approximation to the Binomial
The normal approximation to the binomial distribution is used when the number of trials is large, and both np and n(1-p) are greater than 5. This allows us to use the normal distribution to estimate probabilities for binomial outcomes, simplifying calculations. In this case, we check if the conditions are met to approximate the binomial distribution of mobile device usage with a normal distribution.
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Using the Normal Distribution to Approximate Binomial Probabilities
Probability Calculation
Calculating probabilities involves determining the likelihood of a specific outcome occurring within a given distribution. For the binomial distribution, this can be done using the binomial probability formula, while for the normal approximation, we use the z-score to find probabilities from the standard normal distribution. Understanding how to compute these probabilities is essential for answering the question about the number of adults using mobile devices.
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