MGCR 271 Lecture Notes - Lecture 4: Business Analyst, Binomial Distribution, Natural Number
13 Sep 2016
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The experiment consists of a fixed number of n repeated trials. Each trial has exactly two outcomes: success or failure. The probability of success p does not change from trial to trial. P(success) = p and p(failure) = 1 - p. The binomial random variable x = the number of successes in n trials. Sampling with replacement from an infinite population (i. e. n/n < 0. 05). Note that the term success has no positive connotation - we might define a success to be that a car has a defect. Binomial distributions describe the possible number of times that a particular event will occur in a sample of observations. They are used when we want to know about the occurrence of an event, not its magnitude. In a clinical trial, a patient"s condition may improve or not. The binomial distribution describes the number of patients who improved, not how much better they feel.
