The video tutorial explains the application of the central limit theorem in approximating binomial probabilities. It begins with an introduction to the theorem and its relevance to binomial distributions. The tutorial then demonstrates the exact calculation of binomial probabilities using the binomial formula. It proceeds to show how the central limit theorem can be used for approximation, highlighting the differences between exact and approximate methods. The video also discusses ways to improve approximation accuracy and applies these methods to individual binomial probabilities, illustrating the effectiveness of the central limit theorem in providing accurate approximations.

What is a key application of the Central Limit Theorem discussed in the video?

• Calculating exact probabilities of normal distributions

• Finding the mode of a distribution

• Approximating binomial probabilities

• Determining the mean of a dataset

What type of distribution do the random variables discussed in the video follow?

• Bernoulli distribution

• Poisson distribution

• Normal distribution

• Exponential distribution

What does the Central Limit Theorem imply about the CDF of a standardized random variable as n approaches infinity?

• It approaches the CDF of a standard normal distribution

• It becomes undefined

• It remains constant

• It approaches the CDF of a uniform distribution

In the example provided, what is the probability that SN is less than or equal to 21 using the binomial formula?

• 0.785

• 0.8785

• 0.5

• 0.9

How does the approximation using the Central Limit Theorem compare to the exact calculation?

• It is exactly the same

• It is less accurate by about 10 percentage points

• It is less accurate by about 4 percentage points

• It is always more accurate

What method is suggested to improve the approximation accuracy?

• Using a larger sample size

• Adjusting the mean

• Using the midpoint in calculations

• Increasing the variance

What is the benefit of using the midpoint in the approximation method?

• It increases the sample size

• It simplifies the calculation

• It provides a closer approximation to the true value

• It decreases the variance

How can individual binomial probabilities be approximated using the improved method?

• By using the exact binomial formula

• By considering the area under the normal PDF between specific points

• By adjusting the variance

• By increasing the sample size