Approximate a Binomial Upper Tail with a Normal Distribution

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Quick Overview

Estimate the probability of more than 60 heads in 100 fair flips with a continuity-corrected normal approximation. Compare the result with the exact binomial tail and diagnose approximation quality.

Approximate a Binomial Upper Tail with a Normal Distribution

Company: Virtu

Role: Data Scientist

Category: Statistics & Math

Difficulty: hard

Interview Round: Onsite

Let (X\sim\operatorname{Binomial}(100,0.5)). Estimate (P(X>60)) with a normal approximation, including a continuity correction. Also state the exact expression that your approximation is estimating and assess whether the approximation is reasonable. ### Constraints & Assumptions - Interpret (X>60) as (X\ge61). - Use the binomial mean and variance rather than fitting parameters from data. - Report the standardization step and an approximate numerical probability. ### Clarifying Questions to Ask - Is a continuity correction expected? - Is an exact binomial sum required as a benchmark, or only the normal approximation? - What level of numerical precision should be reported? ```hint Move the boundary by one half The continuous normal event corresponding to (X\ge61) begins at (60.5). ``` ### What a Strong Answer Covers - The correct binomial mean (np) and standard deviation (sqrt{np(1-p)}). - A (z)-score based on 60.5, not 60 or 61 without explanation. - The upper-tail probability and the exact finite sum for comparison. - A check of the usual normal-approximation conditions. ### Follow-up Questions - How inaccurate is the answer if the continuity correction is omitted? - What changes if the coin has head probability (0.1)? - When would a saddlepoint or exact computation be preferable?

Overview: Estimate the probability of more than 60 heads in 100 fair flips with a continuity-corrected normal approximation. Compare the result with the exact binomial tail and diagnose approximation quality.

Read the full Virtu Data Scientist interview experience this question came from

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Virtu
Aug 21, 2026
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Let (X\sim\operatorname{Binomial}(100,0.5)). Estimate (P(X>60)) with a normal approximation, including a continuity correction. Also state the exact expression that your approximation is estimating and assess whether the approximation is reasonable.

Constraints & Assumptions

  • Interpret (X>60) as (X\ge61).
  • Use the binomial mean and variance rather than fitting parameters from data.
  • Report the standardization step and an approximate numerical probability.

Clarifying Questions to Ask Guidance

  • Is a continuity correction expected?
  • Is an exact binomial sum required as a benchmark, or only the normal approximation?
  • What level of numerical precision should be reported?

What a Strong Answer Covers Guidance

  • The correct binomial mean (np) and standard deviation (sqrt{np(1-p)}).
  • A (z)-score based on 60.5, not 60 or 61 without explanation.
  • The upper-tail probability and the exact finite sum for comparison.
  • A check of the usual normal-approximation conditions.

Follow-up Questions Guidance

  • How inaccurate is the answer if the continuity correction is omitted?
  • What changes if the coin has head probability (0.1)?
  • When would a saddlepoint or exact computation be preferable?
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