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Quantitative Techniques - 1: Session - 5/6

This document discusses popular discrete random variables (RVs), including the Bernoulli, binomial, Poisson binomial, geometric, negative binomial, and hypergeometric distributions. It provides details on the Bernoulli and binomial distributions, defining their notation, possible values, probability mass functions, expectations, variances, and cumulative distribution functions. Examples are given to illustrate uses of the binomial distribution.

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24 views12 pages

Quantitative Techniques - 1: Session - 5/6

This document discusses popular discrete random variables (RVs), including the Bernoulli, binomial, Poisson binomial, geometric, negative binomial, and hypergeometric distributions. It provides details on the Bernoulli and binomial distributions, defining their notation, possible values, probability mass functions, expectations, variances, and cumulative distribution functions. Examples are given to illustrate uses of the binomial distribution.

Uploaded by

srivastavavishist
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Popular discrete R.V.

Quantitative Techniques - 1

Prof. Pritam Ranjan

OM & QT, IIM Indore

Email: [email protected]
Office: A - 102, Phone: 512

Session - 5/6: Important discrete random variables


(focus on bionomial & Poisson)
Textbook coverage: Chapter 11

Prof. Pritam Ranjan QT - 1 (July 17, 2017) 1/33


Popular discrete R.V.s

Popular named discrete R.V.s


Bernoulli
binomial
Poisson binomial
geometric
negative binomial
hypergeometric

Poisson
..
.

https://en.wikipedia.org/wiki/Category:Discrete∼distributions
Univariate Discrete Distributions, 3rd Ed - Johnson, Kemp & Kotz

Prof. Pritam Ranjan QT - 1 (July 17, 2017) 2/33


Popular discrete R.V.s

Bernoulli distribution
Notation: X ∼ Ber (p)
Measures: success - 1 / failure - 0
Possible values: X (Ω) = {0, 1}
P(success) = P(X = 1) = p, and
P(failure) = P(X = 0) = 1 − p = q

E.g., Pass/Fail, Yes/No, Male/Female, Profit/Loss,


Eligible/in-eligible, defective/non-defective, car sale with/without
financing, smoker/non-smoker, etc.

Prof. Pritam Ranjan QT - 1 (July 17, 2017) 3/33


Popular discrete R.V.s

Bernoulli distribution
pmf

 1−p u=0
pX (u) = p u=1

0 otherwise.
cdf 
0  u<0
FX (u) = 1−p 0≤u<1

1 1≤u
E (X ) =

Var (X ) =

Prof. Pritam Ranjan QT - 1 (July 17, 2017) 4/33


Popular discrete R.V.s

Binomial distribution
Notation: X ∼ bin(n, p)
bin(n, p) with n = 1 corresponds to Ber (p)
Measures: the number of successes in n independent and identical
Bernoulli trials (P(success) = p for every trial)
Possible values: X (Ω) = {0, 1, 2, ..., n}

Example: (Ex 11.35) Every now and then even a good diamond
cutter has a problem and the diamond breaks. For one cutter, the
rate of breaks is 0.1%. If this cutter works on 75 stones, what is the
probability that he breaks 2 or more?

Example: A salesperson finds that, in the long run, 2 out of 3 sales


calls are successful. Twelve sales calls are to be made; let X be the
number of concluded sales. Is X a binomial variable?

Prof. Pritam Ranjan QT - 1 (July 17, 2017) 5/33


Popular discrete R.V.s

Binomial distribution

pmf

Prof. Pritam Ranjan QT - 1 (July 17, 2017) 6/33


Popular discrete R.V.s

Binomial distribution
expectation: E (X ) = np

Prof. Pritam Ranjan QT - 1 (July 17, 2017) 7/33


Popular discrete R.V.s

Binomial distribution
variance: Var (X ) = np(1 − p)

Prof. Pritam Ranjan QT - 1 (July 17, 2017) 8/33


Popular discrete R.V.s

Binomial distribution
cdf (no closed form - tables)

Prof. Pritam Ranjan QT - 1 (July 17, 2017) 9/33


Popular discrete R.V.s

Binomial distribution

Prof. Pritam Ranjan QT - 1 (July 17, 2017) 10/33


Popular discrete R.V.s

Binomial distribution

Prof. Pritam Ranjan QT - 1 (July 17, 2017) 11/33


Popular discrete R.V.s

Binomial distribution

Prof. Pritam Ranjan QT - 1 (July 17, 2017) 12/33

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