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A Three-Parameter Binomial Approximation

Peköz, Röllin, Čekanavičius and 1 other

Journal of Applied Probability1 Dec 2009Open access

NobleIDark:/48914/w1/20260525/27464C6FDOI10.1017/s0021900200006148

Abstract

We approximate the distribution of the sum of independent but not necessarily identically distributed Bernoulli random variables using a shifted binomial distribution, where the three parameters (the number of trials, the probability of success, and the shift amount) are chosen to match the first three moments of the two distributions. We give a bound on the approximation error in terms of the total variation metric using Stein's method. A numerical study is discussed that shows shifted binomial approximations are typically more accurate than Poisson or standard binomial approximations. The application of the approximation to solving a problem arising in Bayesian hierarchical modeling is also discussed.

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