ISLAMIC MUTUAL FUNDS PROMOTIONAL ACTIVITIES: NORMAL APPROXIMATION OF BINOMIAL DISTRIBUTION AND TYPE I ERROR

Abstract

The paper applies normal approximation procedure to binomial probability distribution. A sample of 392 respondents are surveyed whether they agree or not agree that promotional activities determined the level of awareness of benefits of Islamic mutual funds. The paper hypothesizes the population mean µ of success effects of promotional activities at 68%, and attempts to reduce Type I error - the probability of rejecting null hypothesis when it is true.

Keywords

• binomial probability distribution, normal probability distribution, islamic mutual funds.