What Continuity correction is
Continuity correction is a statistical technique used to improve the accuracy of estimates when a variable is discrete, but the analysis requires it to be continuous. It is commonly used in hypothesis testing and estimation of population parameters.
Continuity correction involves making small adjustments to the values of discrete variables so that they can be treated as a continuous variable for the purpose of the analysis.
The steps for continuity correction are as follows:
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Identify the discrete variable that needs to be adjusted.
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Calculate the midpoint of the interval between the two adjacent values.
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Adjust the value of the discrete variable by adding or subtracting half of the interval’s width from the midpoint.
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Repeat steps 2 and 3 for each discrete variable.
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Analyze the data using the adjusted values.
Examples
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Continuity correction is often used when calculating the exact probability of an event in binomial distributions.
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Continuity correction can be used to adjust the expected value of a discrete distribution when estimating the probability of an event.
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Continuity correction can be used to adjust the variance of a discrete distribution when estimating the probability of an event.
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Continuity correction can be used to adjust the standard deviation of a discrete distribution when estimating the probability of an event.