easy · FRM Part 1 Quantitative Analysis
Under what conditions can the Poisson distribution be used to approximate the Binomial distribution?
- When the number of trials n is large and the probability of success p is small.
- When the trials are dependent and p varies from one trial to the next.
- When the probability of success p is exactly 0.50 and the sample size n is small.
- When the sample variance of the Binomial distribution is strictly greater than its mean.
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