Asian school of business

Business Statistics
Assignment End term 2020

Submitted to: Ms Poornima singh

Submitted by: Dipti Tiwari
(BBA 2 B)
 Distinguish between Binomial, Poisson and Normal distribution

Normal Distribution Binomial Distribution Poisson Distribution

Normal Distribution is Binomial Distribution is The probability of events

often called a bell curve
and is broadly utilized in
statistics, business settings,
and government entities
such as the FDA. It's
widely recognized as being
a grading system for tests
such as the SAT and ACT
in high school or GRE for
graduate students.
Normal Distribution
contains the following
characteristics:
● It occurs naturally in
numerous situations.
considered the likelihood of occurring at a specific
a pass or fail outcome in a time is Poisson
survey or experiment that Distribution.In other
is replicated numerous words, when you are
times. There are only two aware of how often the
potential outcomes for this event happened, Poisson
type of distribution, like a Distribution can be used to
True or False, or Heads or predict how often that
Tails, for example. event will occur.It provides
the likelihood of a given
number of events
Characteristics of occurring in a set period.
Binomial Distribution:
Poisson Distribution
● First variable: The Characteristics:
number of times an
experiment is
● An event can happen

Data points are any amount of times

● conducted
throughout a period.
similar and occur
● Second variable:
within a small range.
Probability of a single,
● Events occurring
● Much fewer outliers don't affect the
particular outcome
on the low and high probability of another

ends of data range.

● The probability of an event occurring
occurrence can only within the same
be determined if it's period.
done a number of
Example: ● Occurrence rate is
times
Formula Values: constant and doesn't

X = Value that is being

● None of the change based on time.
performed trials have
standardized ● The likelihood of an
any effect on the
μ = Mean of the
probability of the
distribution
following trial occurring event
corresponds to the
σ = Standard deviation of time length.
● Likelihood of success is
the distribution
the same from one
● Use the following trial to the following
formula to convert a trial Formula Values:
raw data value, X to
x: Actual number of
a standard score, Z.
occurring successes
● Assuming a specific
e: 2.71828 (e =
population has μ =
mathematical constant
4, and σ = 2. For
λ: Average number of
example, finding the
successes with a specified
probability of the Formula Values:
region
randomly selected x: Number of successes
value being greater ● For example, the
X: Random variable
than 6 would average number of
resemble the C: Combination of x yearly accidents at a
successes from n trials traffic intersection is
following formula:
p: Probability of success 5. To determine the
● The Z score
probability that there
corresponding to X (n - x): Number of failures
are exactly three
=6 will be: (1 - p): Probability of
accidents at the same
failure
intersection this year,
● Assuming that 15% apply the following
● Z = 1 means that
of changing street formula:
the value of X = 6
lights records a car Here, λ = 5, and x =
which is 1 standard
running a red light, 3.
deviation above the
and the data has a
mean.
binomial distribution.
●
● The formula used to
Business Applications: determine the ● Therefore there's a 14%
● Can be utilized to probability that chance that there will be
model risks and exactly 3 cars will
exactly three accidents
following the run a red light in 20
there this year.
distribution of likely light changes would
outcomes for certain be as follows: P =
events, like the 0.15, n = 20, x = 3 Business Applications:
amount of next
● Apply the formula, ● Predicting customer
month's revenue
substituting these sales on particular
 from a specific values: days/times of the
service. year.

● Process variations in ● Therefore, the ● Supply and demand

operations probability of 3 cars estimations to help
management are running a red light in with stocking
sometimes normally 20 light changes products.
distributed, as is would be 0.24, or
● Service industries can
employee 24%.
prepare for an influx
performance in
of customers, hire
Human Resource
temporary help,
Business Applications:
Management.
order additional
● Banks and other
● Human Resource supplies, and make
financial institutions
management applies alternative plans to
use Binomial
Normal Distribution reroute customers if
Distribution to
to employee needed.
determine the
performance.
likelihood of
●
borrowers defaulting,
and apply the
number towards
pricing insurance,
and figuring out how
much money to keep
in reserve, or how
much to loan.