Module 4: Probability Distribution

We have already studied about PMF P[X=x] for discrete RVs and PDF f(x) for
Continuous RVs. Probability Distribution is a rule that assigns Probabilities each
element of the set that may occur.
Here, we have some special kind of Probability Distributions based on discrete and
Continuous RVs.

(1). Binomial Distribution

Binomial Distribution is one of the discreet Distributions, so let X is a discrete Random
Variable. Binomial distribution is appropriate where are n identical trials and we want to
know the Probability of getting x success i.e., P[X=x].
Necessary conditions and criteria to use binomial distributions:

 Rule 1: Situation where there are only two possible mutually exclusive outcomes
success (p) or failure (q) (for example, yes/no, H/T).
 Rule2: A fixed number of repeated experiments and trials are conducted (the
process must have a clearly defined number of trials).
 Rule 3: All trials are identical and independent (identical means every trial must
be performed the same way as the others; independent means that the result of one
trial does not affect the results of the other subsequent trials).
 Rule: 4: The probability of success is the same in every one of the trials.
 (2). Poisson distribution
Poisson distribution is also a discreet Distribution (X is a discrete Random Variable).
Poisson distribution is appropriate to use where the chance of any individual event
being success is small, like printing mistakes in a book, road accidents, etc.
Poisson distribution is a limiting case of Binomial distribution under following
conditions;
The number of trials “n” is finitely large i.e., n  .
Probability of success “p” for each trial is very small i.e., p  0.
  np is finite

Note: Therefore, for Poisson distribution: Mean=Variance=  .