Binomial Distribution

The power of two

1
Is it probable that probability brings certainty?
Pascal
2
Definition of the Combination function
Mathematical Notation:

=
!
! !
Description:
n choose k
Interpretation:
How many different ways can you select k items from a set of n items
when the order does not matter?
3
Binomial Distribution Coin Toss
4
Define the binomial distribution:
; , =

1

Set of trial Experiment
Random Variable
Probability Distribution
Number of successes in n trials Outcome
Binomial Distribution Coin Toss
5
Define the binomial distribution for an experiment of four
tosses of a fair coin. What is the likelihood of getting exactly
two heads (successes).
Parameters of the Binomial distribution.
= 2; = 4, = 0.5

1
()
1 1
# Heads
# Tails
Probability
of Head
Probability
of Tail
# combinations

1
()
Pascal and the Binomial Theorem
Pascals Rule
If
+

=
=0

Then

=
1
1
+
1

6
http://en.wikipedia.org/wiki/Pascal%27s_triangle
Method for computing the binomial coefficients!
Binomial Coefficients (E)
A fair coin is tossed three times.
How many ways can two heads
occur?
7
http://en.wikipedia.org/wiki/Pascal%27s_triangle
A 2
B 4
C 3
D None
Mean of Binomial Distribution
From the definition:
=
=0

1

Substituting and some manipulation
= 1 , = 1 and +

=
=0

!
! !

Gives:
=
8
Variance of Binomial Distribution I
From the definition of variance:
var = ()
2
=
2
()
2
From the definition of the binomial theorem:

2
=
=0

1

9
Variance of Binomial Distribution II
Using:
= 1 , = 1 and +

=
=0

!
! !

Gives:

2
=
2

2
+(1 )
Substituting into var definition:
(1 )
10
Binomial Gaussian Distribution
For the case where
1. 0.5,
2. is large enough
The binomial distribution is
approximated by the Gaussian
distribution where:
=
= (1 )
; , =
1
2

2
2
2
11
http://en.wikipedia.org/wiki/Binomial_distribution
Binomial Poisson Distribution
For the case where:
1. 20 and 0.05
2. 100 and 10
Then the Poisson distribution is
approximated by the binomial
distribution where:

; =

!
12