IMPORTANT POINTS TO REMEMBER

1. Probabilityranges from 0 to 1.
2. The Classical School of probability assumes
that all possible outcomes of an experiment
are equally likely.
3. If an event cannot take place, probability will be 0.
4. p + q would always be 1.
5. If two events A and B are independent,then their complementsare also independent.
6. If two events A and B are mutually exclusivethe probabilityof occurrence of either A or
B is given by P(A) + PCB).
7. If two events A and B are overlapping events, the probability of occurrence of either A or
B is given by P(A) + P(B) - and B).
8. If two events A and B are independent,the probabilitythat they will both occur is given
by P(A) x PCB).
9. If two events A and B are dependent, the conditionalprobability of B given A is given by

10. Dependent events are those in which the outcome of one affects and is affected by the
other.
11. Joint Probability is the probability of the joint or simultaneousoccurrence of two or more
events.
12. The probability obtained by following relative frequency is called posterior probability.
13. The order of arrangement is important in permutations.
14. Permutation exceeds combinations.
15. ncr is equal to 1 when r = n
16. 'lc is equal to n when r = 1.
17. nc is equal to I when r = 0
18. n is equal to n when r = n —1
7 7
19.

LIST OF FORMULAE
1. Range of probability of Otol
an event
0
2. Probability of an event
which cannot take place
 3. Probability of an event which 1

is certain i.e., bound to occur

4. Probability of the entire
sample space
5. Addition Rule of Probability
(a) When events are Probabilityof occurrenceof either A or B—
Mutually Exclusive
(b) When events are Not Probability of occurrenceof at least A or B—
Mutually Exclusive
6. Multiplication Rule of (i) Probability of occurrence of both A & B—
Probability When events
are Independent
(ii) Probability of non-occurrence of both A & B—

(iii) Probability of occurrence of A and not B—

(iv) Probability of occurrence of B and not A—

(v) Probability of occurrence of only one event—

(vi) Probability of occurrence of at least one event

= n 73)
(vii) Probability of non-occurrence of at least one event

(viii) Probability of occurrence of an event

P (A B) (BIA)
7. Conditional Probability
Joint Probability
Sum of Joint Probabilities
8. Posterior Probability
here, Joint Probability= Prior Probabilityx
Conditional Probability
9. Expected Value E(X)
10. Variance of Expectation E(X2) -
where, = E px 2
I. Which of the following is False?
(a) Probability ranges from 0 to 1.
(b) The classical school of thought or probabilityassumes that all possible outcomes of
an experiment are equally likely.
(c) If an event cannot take place, probability will be 0.
(d) p + q would always be 1.
(e) If two events A and B are independent, then their complements are mutually exclusive.
2. Which of the following is False?
(a) If two events A and B are mutuallyexclusive the probability of occurrence of either
A or B is given by P (A) + P (B).
(b) If two events A and B are overlappingevents, the probability of occurrence of either
A or B is given by P(A) + P(B) -P (A and B).
(c) If two events A and B are dependent, the conditional probability of B given A is given
by
(d) If two events A and B are independent,the probability that they will both occur is
given by P(A) x P(B).
3. Which of the following is False?
(a) If a card is drawn from a pack of cards, the probabilityof getting either a king or
queen is 1/13.
(b) The probabilityof obtaininga total of 5 or 6 in a throw of two dice is 1/4.
Ndndjdjdddkdkdkdkkdodldk
(c) The probability of obtaining5 and 6 in a throw of two dice is 2/36.
(d) The probabilityof obtaininga total of 12 or 2 in a throw of two dice is minimum.
(e) The probabilityof obtaininga total of 7 in a throw of two dice is maximum.
4. Which of the following is False?
(a) ncr is equal to I when r = n (b) ncr is equal to n when r = 1.
(c) ncr is equal to 1 when r = 0 (d) 7c4 >

5. Which of the following is False?

(a) The order of arrangementis importantin permutations.
(b) Permutation exceeds combinations.
(c) Joint probability is the probability of the joint or simultaneous occurrence
more events. of two or
(d) The probability obtained by following relative frequency is called
prior
(e) Dependent events are those in which the outcome of one affects and probability.
is affected by
the other.
 (e) events A and B ate indcvx•ndent.thctt thejr compioncnts arc
2. (c) If two events A and B ate «k•pcndent,the conditional probability oi
byr (AB)r
3. (a) If a card is draun (rom a p.x•kof the probability of getting euher k:ng or

(d) by folloøing frcquency called p€fiierior probabality.

 IMPORTANTPOINTS TO REMEMBER
1. Binomial Distribution is associated with the name of the french Mathematician James
Bernoulli.
2. Binomial Distributions are discrete probability distributions
3. In a Binomial Distribution, variance is always less than mean.
4. The Mean of Binomial Distribution is np.
5. The Varianceof Binomial Distributionis npq
6. The Variance of a Binomial Distribution can not exceed n/4.
7. If Value of P = 0.5, the Binomial Distribution is symmetrical.
8. If Value of P > 0.5, the Binomial Distributionis skewed to the left.
9. As p increases for fixed n, the Binomial Distributionshifts to the right.
10. As n increases for fixed p, the Binomial Distributionshifts to the right.
11. As p increases for a fixed n, both the mean and mode increase.
12. If in Binomial Distribution Mean is 10 and Standard Deviation is 3, q will be 0.9
13. The results calculated by a student for a Binomial Distribution as mean 10 and standard
deviation 4, are not correct.
14. The Sampling Distribution of the Numbers of Successes follows a Binomial Probability
Distribution.
15. The First Moment of Binomial Distribution is = 0.
16. The Second Moment of Binomial Distribution is = npq.
17. Binomial Distribution tends to be a Normal Distribution when (a) 'N' is large (b) Neither
'p' or 'q' is close to zero. In practice, the approximationis very good if both np and
nq are greater than o.

LIST OF FORMULAE
n n-r where
1. Probability Function r) = crp r q , r = 0, 1, 2, ...,
n

P = Probability of success in a single trial

q=1-P
n = Number of trials
1. Which of the followingis False?
(a) Binomial distribution is associated with the name of the french Mathematician James
Bernoulli.
(b) Binomial distributions are discrete probability distributions
(c) Variance of a binomial distributionis always less than mean and can never exceed
n/4.
(d) The standard deviation of binomial distribution is
 (e) The results calculated by a student for a binomial distribution as mean 10 and
standard deviation 4, are correct.
2. Which of the following is False?
(a) As p increases for fixed n, the binomial distribution shifts to the right.
(b) As n increases for fixed p, the binomial distribution shifts to the right.
(c) As p increases for a fixed n, both the mean and mode increase.
(d) If value of p = 0.5, the binomial distributionis symmetrical.
(e) If value of p < 0.5, the binomial distribution is skewed to the left.
3. Which of the followingis False?
(a) If in binomial distribution mean is 10 and standard deviation is 3, q will be 0.9
(b) The results calculated by a student for a binomial distribution as mean 10 and
standard deviation 4, are not correct.
(c) The StandardDeviationof binomialdistributionis = npq.
(d) The sampling distribution of the numbers of successes follows a binomial probability
distribution.
4. Which of the following is False?
(a) In the binomial distribution as p increases for fixed n, both the mean and mode in-
crease.
(b) In the binomial distribution as n increases for fixed p, the mean increases.
(c) Two central values of a binomial distribution will be identical in case n is an odd
number.
(d) Binomial Distribution tends to be a Normal Distribution when 'N' is large and Neither
'p' or 'q' is close to zero.
none of these
1. (e) Varianceof a binomial distributionis always less than mean. Here, Variance (16) >
Mean (10).
2. (e) If value of P < 0.5, the binomialdistributionis skewedto the right.
3. (c) The Standard Deviation of a Binomial Distribution is npq
4.
 IMPORTANTPOINTS TO REMEMBER
Denis
Poisson Distribution is associated with the name of French Mathematician Simon
Poisson,
2. Poisson Distributions arc discrete probability distributions.
3. In cage of Poisson I)iqtributionMean & Variance are equal.
4. In case of Poisson J)istribution Mean & Variance is m.
5. In case of Poisson Distributionp is less than q.
6. In casc of Poisson Distributionm must be greater than 0.
7. In casc of Poisson Distributione = 2.7183.
8. In casc of Poisson Distribution as m or n increases. the distribution shifts to right.
9. In casc of Poisson Distribution Mean, Variance. Second Moment and Third Moment are
equal.
10. In casc of Poisson Distribution Skewncss (01) and Coefficient of Kurtosis (72) are same
and are equal to reciprocal of mean/variance
11. In casc of Poisson DistributionCoefficientof skewnessis square root of reciprocal of
mcan/variancc.
12. The First Moment of Poisson Distribution is = 0.
13. The Second and Third Moment of Poisson Distribution is z m.
14. The Poisson Distribution can frequently be used to approximate Binomial Distribution
when—
(i) n, i.e. number of trials, is indefinitely large, i.e. n
(ii) p. i.e. the probabilityof success for each trial is indefinitely small. i.e. p —Y0, and
(iii) np z m (say) is finite.
Note: Jn practice, the Poisson distribution may be used in place of the binomial distribution,
where n 20 and P 0.1.

LIST OF FORMULAE

P(r)
J, Probability Function r!
where, r go, . , e. 2.7183
 m mean i.e. np or the average number of
occurrences of an event.

Pmbability (1/0 event

Piobability of / event

Ptobability of 2 events
2!
3

Pmbability of 3 events
3!
Probabilitv of at least I event I or more)
Probability of at least 2 events 2 or more)
Ptobability of at the most 2 events P(r =
Pmobability of less than 2 events
Ptobability of more than 2 events = 3 or more)

2. Expected Frequency Function N.P(r) = N.

r!
Thus, expected frequency = Probability of an event x Total No. of
Observations (N).
Note: Fitting a Poisson distribution means finding out the theoretical
expected frequencies.
3. Mean = m = np

4. Variance
1. Which of the followingis False?
(a) Poisson distribution is associated with the name of french Mathematician Simon Denis
Poisson.
(b) Poisson distributionsare discrete probability distributions
(c) In case of Poisson DistributionMean & Variance are not equal.
(d) In case of PoissonDistributionp is less than q and m is greater than 0.
2. Which of the followingis False?
(a) In Poissondistribution,probabilityof successis very close to 0.
(b) In Poisson distribution, the no. of trials is large.
(c) In PoissonDistribution,np is finite.
(d) None of these
3. Which of the followingis False?
(a) Poisson Distribution can be used to approximate the Binomial Distribution when n =
00,p = 0 and np = finite
(b) The probabilityfunctionof binomialdistributionis P(x = r) =
r!
e- .m
(c) The ExpectedFrequencyFunctionof binomial distribution is N.P(r) = N.
case of PoissonDistributione = 2.7138. r!
(d) In
4. Which of the followingis False?
(a) Poisson distribution is always positively skewed.
(b) In case of PoissonDistributionas m or n increases,the distributionshifts to left.
(c) In case of Poisson Distributionm must be greater than 0.
(d) Poisson distributionmay be unimodalor bimodal.
1. (c) In case of Poisson Distribution Mean & Varianceare equal.

3. (d) In case of PoissonDistributione = 2.7183

4. (b) In case of Poisson Distributionas m or n increases,the distribution shifts to right.
 IMPORTANT POINTS TO REMEMBER
I. Normal Distribution(t-distribution,e-distribution, F-distribution)is continuous distribution.
2. Normal Distribution is bell shaped and unimodal.
3. In case of Normal Distribution Mean = Median = Mode.
4. In case of Normal Distribution Skewness = 0
5. In case of Normal Distribution Mean Deviation = 415thor more precisely 0.7979 of the
Standard Deviation.
6. In case of Normal Distribution Quartile Deviation is 2/3rd or more precisely 0.6745 of
the Standard Deviation.
7. In case of Normal DistributionQI and Q3 are equidistant from the median and hence
QI = Mean —.6745 0 , (23= Mean + .6745 [Note: Mean = Median = Mode]
8. In case of Normal Distribution Med. —QI = (23—Med.
9. In case of Normal Distribution Highest Value= Mean + Half of Range &
Lowest Value = Mean —Half of Range
10. In case of Normal DistributionMean ± I G covers 68.27% of area,Mean ± 3 covers
95.45% of area,Mean ± 3 covers 99.73%of area
ll. Under a normal distribution the area enclosed between Mean and 1 = 0.34135. Mean
and 2 = 0.47725 and Mean and 3 = 0.49865.
12. Normal Distribution with X = 0 and G = I is known as Standard Normal Distribution.
13. The height of normal curve is maximumat the Mean Value.

I-ISTOF FORMULAE
Mean =
1. Mean
Variance = 0 2
2. Variance
1
3. Probability Function 27t
(or Density Function) where, = Mean of the normal random variable X.
O = Standard deviation of the given normal distribution.
[Twoparameters]
 -2.5066
e = 2.7183 [Two constants]

4. Density Function in Terms of 1

where, Z=
27t
Standard Normal Variable

Mean = O , Standard deviation = 1

COMPÄRATIVE STUDY OF THEORETICAL DIStRlBUTlONS

Basis of Comparison BinomialDistribution Poisson Distribution Normal Distribution
1 Type of Distribution Discrete Probability Discrete Probability Continuous Distribution
Distribution Probability Distribution
2 Parameters Biparametric n, p Uniparametric m
3 Restriction on
Parameters
4 Mean (X) X = np
5 Variance (0 2) = npq 62

6 Probability Function P (r) = ncrp r qn- r 1

r! 27t
(or Density Function) where, (—00 X < 00)
where, g = Mean
m = Mean e = 2.7183 (the base of
natural logarithms)
G = Standard Deviation

7 Expected Frequency
Distribution = N. n crp r qn r!

8 Density Function in 1

terms of Standard G 27t

where, z =
Normal Variate Mean = O
Standard deviation
9 Skewness/ Shape P = 0.5 Normal Positively Skewed to Skewnes = 0
P < 0.5 Skewed to right right Bell—Shaped
P > 0.5 Skewed to left

10 Mode Unimodal or bimodal Unimodal

Il Relationship
Mean = Mode = Median
between Mean,
Mode, and Median
12 Conditions l. Discrete Variable l. Discrete Variable
Under which Used 2. Independent Trials 2. Independent Trials
3. Finite and Fixed 3. Large No. of Trials
No. of Trials 4. Smallp
4. Only Two Outcomes 5. Finite Mean
(Success/Failure)
5. Fixed Prob. for each