Binomial Distribution
Binomial Distribution
• Important terminologies
• Computing probabilities
Important terminologies
A probability distribution is a sample space and as such provides all the possible
values that a random variable, X, can assume and assigns a likelihood to each
event.
Random variable:
• consists of different values, which represent or describe the outcomes of an
experiment.
Important terminologies
Number of Probability
Vehicles P(x) 1. P(X = 2) = 0.425
Owned
0 .015 2. P(X< 3) = P(X=0) +P(X=1) + P(X=2)
= 0.015 + 0.235 + 0.425
1 .235
= 0.675
2 .425
3 .245
4 .080
å P( x) =1
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Binomial Distribution
Ø A binomial distribution is a specific type of discrete probability distribution
which is applicable in situations where an event can occur in one of two ways
e.g. success/failure, defective/non-defective.
Binomial Distribution
P( X = x) = nC x ´ p x ´ q n - x
• Where :
▫ x = no. of successful outcomes
▫ p = probability of success
▫ n = number of trials
▫ q = probability of failure
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Binomial Distribution
According to tables provided by the National Center for Health Statistics in Vital
Statistics of the United States, there is roughly an 80% chance that a person of age
20 years will be alive at age 65 years. Suppose three people of age 20 years are
selected at random. Find the probability that the number alive at age 65 years will
be (a) exactly two, (b) at most one (c) at least one.
Solution:
Let x denote the number of people of the three who are alive at age 65.
Step 1: Identify the success. The success is that a person currently of age 20 will be
alive at age 65.
Step 2: Determine p, the probability of success. The probability that a person
currently of age 20 will be alive at age 65 is 80%, so p = 0.8.
Determine q, the probability of failure. The probability that a person currently of
age 20 will NOT be alive at age 65 is 20%, that is q = 0.2. (1 - 0.8 = 0.2)
Step 3: Determine n, the number of trials. The number of trials is the number of
people in the study, which is three, so n = 3.
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Example con’t
Step 4: The binomial probability formula for the number of
successes, X, is
P(X = x) =
n
Cx p x q n- x
a) P ( X = 2) = 3C 2 (0.8) 2 (0.2) 3- 2
P ( X = 2) = 3C 2 (0.8) 2 (0.2)1
P ( X = 2) = 3 * 0.64 * 0.2
P ( X = 2) = 0.384
•
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Example con’t
However, using the complementation rule is easier:
P(X ≥ 1) = 1 − P(X < 1) = 1 − P(X = 0)
= 1 - 0.008 = 0.992
Interpretation: There is a 99.2% chance that one or
more of the three people will be alive at age 65.
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Examples
Example
•
Examples 19
Examples