Some Numerical Comparisons of Several Approximations to the Binomial Distribution
Abstract Several approximations to the binomial distribution were compared in 1956 by Raff [9], including the normal, arcsine, normal Gram-Charlier, Camp-Paulson, Poisson, and Poisson Gram-Charlier approximations. The closeness of these approximations is judged by the maximal error which can arise in evaluating any sum of consecutive binomial terms. Borges [3] investigated a general class of approximations (which includes some of the above) and showed that a certain beta-transformation of a binomially distributed variable is the unique member of this class which is approximately normal with error 0(1/n). In 1963, Bol'shev [2] gave two new Poisson-Type approximations. In this paper, some of Raff's tables are extended and tables for the error of these newer approximations are added. As a consequence of the numerical results obtained, the Poisson Gram-Charlier approximation is recommended for small values of p while the Camp-Paulson and Borges' approximations should generally be preferred for large p.