Binomial Distribution
Dr. Poonam Kaushal
Assistant Professor
ICFAI Business School
Binomial Distribution
The binomial distribution is a commonly used discrete
distribution in statistics. The normal distribution as
opposed to a binomial distribution is a continuous
distribution.
Bernoulli trial or Bernoulli experiment
Binomial Distribution
A binomial experiment has the following properties:
experiment consists of n identical and independent trials
each trial results in one of two outcomes: success or failure
P(success) = p
P(failure) = q = 1 - p for all trials
The random variable of interest, X, is the number of successes
in the n trials.
X has a binomial distribution with parameters n and p
Assumptions
Each trial has only two outcomes
The experiment has n identical trials
Each trial is independent of the other trials
The probability of getting one outcome (success) p is held
constant and the probability of getting the other outcome
(failure) is also held constant, represented by (1 - p).
Includes replacement for each trial. It can be used to
approximate without replacement trials
What is P(x) for binomial?
Examples
Example 1: If a coin is tossed 5 times, using binomial
distribution find the probability of:
(a)Exactly 2 heads
(b) At least 4 heads.
Binomial Distribution Formula for the
Mean and Variance?
The mean (expected value) of a binomial
random variable is np
The standard deviation of a binomial
isnpq
random variable
Example
Random Guessing; n = 100 questions.
Probability of correct guess; p = 1/4
Probability of wrong guess; q = 3/4
1
Expected Value = np 100 25
On average, you will get 25 right.
4
Standard Deviation =
1 3
npq np 1 p 100 4.33
4 4
Example
Cancer Treatment; n = 20 patients
Probability of successful treatments; p = 0.7
Probability of no success; q = ?
Calculate the mean and standard deviation.
Normal Approximation
For large n, the binomial distribution can be
approximated by the normal,
X np
Z
npq
is approximately standard normal for large n.