Eastwood's Home Page BA201 Home Page
Having trouble? Send me your questions. I will post questions of general interest and my answers.
Q: We were wondering where the Real Estate information
was for problem 2-52?
A: It is in Appendix I on pages 519-520. But it is also on the CD so that you
need not enter all those numbers. Once you've installed the CD (instructions
are printed on the CD), go to Data, then to Appendix and get the file RealEstate.xls.
Q: I am not really confident in using the continuity factor yet, could you please explain when it is used?
A: The most important thing to remember is that you will use the continuity correction factor ONLY when you are approximating a binomial probability with the normal distribution. (As you mentioned, this approximation is only appropriate when np>5 and nq>5.) If X is already a continuous, normally distributed random variable, no correction is required.
Q: How do I decide whether to add 0.5 or subtract 0.5?
A: If you draw a picture, then the direction of the correction should be obvious. It is possible to write a specific formula for each case. Let a and b represent particular values of a Binomial random variable, X.

Downloading (using IE5) an Excel spreadsheet I have posted:
08/24/06
Eastwood asked: "Some students have
complained
Jeff Williams, CBA Webmaster, responded: "This appears to be a 'feature'... When an IE 5 user requests an office document that is hosted on (our server) the system will ask for authentication to allow remote authoring. Should this authentication fail, the user should be granted read permissions. Have your students click "cancel" when the dialogue comes up, and they should have no problems. We are looking into ways to disable this 'feature' as time permits.