||In applied statistics, the continuity correction is useful when the binomial distribution is approximated by the normal distribution. In the first part of this thesis, we review the binomial distribution and the central limit theorem. If the sample size gets larger, the binomial distribution approaches to the normal distribution. The continuity correction is an adjustment that is made to further improve the normal approximation, also known as Yates’s correction for continuity (Yates, 1934; Cox, 1970). We also introduce Cressie’s finely tuned continuity correction (Cressie, 1978), which are less known for statisticians. We discuss the application of these continuity corrections to the problem of statistical process control and confidence limit. In addition, we perform numerical studies to compare these corrections.|
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