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Topic:: Introduction To The Binomial Distribution

The document provides an introduction to the binomial distribution, including its definition, conditions for use, formula, and examples. The binomial distribution models experiments with two possible outcomes (success/failure) over a fixed number of independent trials where the probability of success is the same for each trial. The key conditions are: 1) two possible outcomes, 2) fixed number of trials, 3) identical and independent trials, 4) constant probability of success. The formula calculates the probability of getting x successes in n trials. Examples where binomial distributions apply include coin flips, surveys, and business startups reporting profits.

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Kim Nobleza
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84 views14 pages

Topic:: Introduction To The Binomial Distribution

The document provides an introduction to the binomial distribution, including its definition, conditions for use, formula, and examples. The binomial distribution models experiments with two possible outcomes (success/failure) over a fixed number of independent trials where the probability of success is the same for each trial. The key conditions are: 1) two possible outcomes, 2) fixed number of trials, 3) identical and independent trials, 4) constant probability of success. The formula calculates the probability of getting x successes in n trials. Examples where binomial distributions apply include coin flips, surveys, and business startups reporting profits.

Uploaded by

Kim Nobleza
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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TOPIC:

Introduction to the
Binomial Distribution
An Introduction to the Binomial Distribution
• Binomial distribution definition and formula.
• Conditions for using the formula.
• 3 examples of the binomial distribution problems
and solutions.
Many real life and business situations are a pass-fail
type. For example, if you flip a coin, you either get
heads or tails. You either will win or lose a
backgammon game. There are only two possible
outcomes – success and failure, win and lose.

And the key element here also is that likelihood of the


two outcomes may or may not be the same.
So, what is binomial distribution?
Let’s define it:
In simple words, a binomial distribution is the
probability of a success or failure results in an
experiment that is repeated a few or many times.
The prefix “bi” means two. We have only 2
possible incomes.
Binomial probability distributions are very useful
in a wide range of problems, experiments, and
surveys. However, how to know when to use
them?
Let’s see the necessary conditions and
criteria to use binomial distributions:

Rule 1: Situation where there are only two


possible mutually exclusive outcomes (for
example, yes/no survey questions).
Rule2: A fixed number of repeated
experiments and trials are conducted (the
process must have a clearly defined number
of trials).
Rule 3: All trials are identical and
independent (identical means every
trial must be performed the same way
as the others; independent means
that the result of one trial does not
affect the results of the other
subsequent trials).
Rule: 4: The probability of success is
the same in every one of the trials.
Notations for Binomial Distribution
and the Mass Formula:
Where:
 P is the probability of success on any
trail.
 q = 1- P – the probability of failure
 n – the number of trails/experiments
 x – the number of successes, it can
take the values 0, 1, 2, 3, . . . n.
 nCx = n!/x!(n-x) and denotes the
number of combinations of n
elements taken x at a time.
Assuming what the nCx means, we
can write the above formula in this
way:
Just to remind that the ! symbol
after a number means it’s a
factorial. The factorial of a non-
negative integer x is denoted by
x!. And x! is the product of all
positive integers less than or equal
to x. For example, 4! = 4 x 3 x 2 x 1
= 24.
Examples of binomial distribution problems:
 The number of defective/non-defective
products in a production run.
 Yes/No Survey (such as asking 150 people
if they watch ABC news).
 Vote counts for a candidate in an election.
 The number of successful sales calls.
 The number of male/female workers in a
company.
So, as we have the basis let’s see some
binominal distribution examples, problems,
and solutions from real life.
Example 1:
Let’s say that 80% of all business
startups in the IT industry report that
they generate a profit in their first year.
If a sample of 10 new IT business
startups is selected, find the probability
that exactly seven will generate a profit
in their first year.
First, do we satisfy the conditions of the
binomial distribution model?
There are only two possible mutually
exclusive outcomes – to generate a profit
in the first year or not (yes or no).
There are a fixed number of trails
(startups) – 10.
The IT startups are independent and it is
reasonable to assume that this is true.
“No one can make you feel
inferior without your consent.”
― Eleanor Roosevelt
Thank you
for listening

Ariel Mendones Roman
Reporter

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