Binomial approximation

Binomial approximation

The binomial approximation is useful for approximately calculating powers of numbers close to 1. It states that if x is a real number close to 0 and alpha is a real number, then

: (1 + x)^alpha approx 1 + alpha x.

This approximation can be obtained by using the binomial theorem and ignoring the terms beyond the first two.

The left-hand side of this relation is always greater than or equal to the right-hand side for x>-1 and alpha a non-negative integer, by Bernoulli's inequality.


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