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Introduction –
To understand the Binomial distribution, we must first understand what
a Bernoulli Trial is. A Bernoulli trial is a random experiment with only two
possible outcomes. These two outcomes are usually referred to as
Success and Failure, but they may be given any label necessary. Each
Bernoulli trial or a Random experiment is independent of the other.
For example, consider the scenario where we need to find the probability of
the event of a even number showing up on die roll.
If E = Even number shows up, then
This is the same probability as the first experiment. This is because the two
experiments are independent i.e. the outcome of one experiment does not
affect the other.
Now that we know what a Bernoulli trial is, we can move on to understand
the Binomial Distribution.
Notice that in the above formula, if we put n=1, we get the same result as a
Bernoulli trial. Here x can take value 0 or 1(since number of successes can
be 0 or 1 in one experiment).
Expected Value –
To find the Expected Value of the Binomial Distribution, let’s first find out the
Expected value of a Bernoulli trial. Let p and q be the probabilities of
Success(1) and Failure(0).
Since the Binomial Distribution has n Bernoulli trials, the expected Value is
multiplied by n. This is due to the fact that each experiment is independent
and the Expected value of the sum of Random variables is equal to the sum
of their individual Expected Values. This property is also called the Linearity
of Expectation.
Using this result to find out the variance of the Binomial Distribution.
Solution – If more than 60 people show up, then the airline has to
reschedule tickets for the excess number of people. Let X be the random
variable denoting the number of passengers that show up. We have to
find the probability of the event where X <=60.
Let p be the probability that a passenger shows up. p = 1 – 0.1 = 0.9.
q = 0.1