How Does Stirling's Approximation Simplify Poisson to Normal Approximation?

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This discussion focuses on the application of Stirling's approximation in simplifying the Poisson distribution to a normal approximation. The key equation presented is the approximation of factorials, specifically \(\ln n! \approx n\ln n - n\), which is utilized when \(n\) is large and \(r\) is small. The user explores how this approximation leads to the simplification of terms in the Poisson distribution, ultimately arriving at the expression \(\approx n^r\). The conversation highlights the importance of logarithmic transformations in understanding the relationship between the Poisson and normal distributions.

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Mathsboi
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I read this in a book (it was stats and about poisson approx to normal)
Given was this:

[tex]n(n-1)(n-2) \cdots (n-r+1) = \frac{n!}{(n-r)!} \approx n^r[/tex]
Stating that "Stirling's approximation" had been used.
So I looked the up and found:

[tex]\ln n! \approx n\ln n - n\[/tex]


In the poisson distribution n is very large and [tex]r[/tex] is very small compared to [tex]n[/tex] so all the terms in the given equation approximate to [tex]n[/tex]... This gives me my [tex]\approx n^r[/tex]

But I just wondered where the Stirling equation comes into it...

[tex]\ln (\frac{n!}{(n-r)!}) = \ln(n!) - \ln((n-r)!) \[/tex]
[tex]\approx n\ln n - n - \left[ (n-r)\ln((n-r)) - (n-r) \right]\[/tex]
[tex]\approx n\ln n - n - (n-r)\ln((n-r)) + n - r \[/tex]
[tex]\approx n\ln n - (n-r)\ln((n-r)) -r \[/tex]
...
That's as far as I got...

[tex]\approx \ln (n^n) - \ln((n-r)^{(r-n)}) -r \[/tex]

Unless taking logs, instead of to base e, to base n...

[tex]\approx Log_n (n^n) - Log_n ((n-r)^{(r-n)}) -r \[/tex]
Then...
[tex]Log_n (n^n) - Log_n ((n-r)^{(r-n)}) = r\[/tex]
[tex]n^n - (n-r)^{(n-r)} = n^r\[/tex]

^ not sure if that's correct though

Can anyone help?
 
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This is "number theory", not "algebra and linear algebra" so I am moving it.
 
[tex]\ln(n-r) \approx ln(n) - r/n[/tex]

[tex] n\ln n - (n-r)\ln((n-r)) -r \approx n \ln n - n \ln n + n r/n + r (\ln n - r/n) - r\approx r \ln n - r^2/n[/tex]
 

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