SOC 885 Final: Problem_134 (3)

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Consider a binomial experiment for n = 20, p = . 05. Use table 1, appendix 3, to calculate the binomial probabilities for y = 0, 1, 2, 3, and 4. Calculate the same probabilities by using the poisson approximation with = np. When a random variable satisfies the requirements to be a binomial random variable, it takes one of the possible values 0, 1, 2, up to n, the number of trials. The probability associated with each possible value y is. The term , called the binomial coefficient, is computed using the formula derived in the following way. = n (n-1) (n-2) (2) (1) for n trials and they are multiplied together because the trials are independent. The term in the above equation represents the probability of y successes in y trials, the term represents the probability of n-y failures in n-y.