Business

TypesStatistics
of Probability Distributions For
Random Variables
Ikram-E-Khuda
• Discrete Probability Distributions
• Binomial Distributions
• Hypergeometric Distributions
• Poisson Distributions
• Negative Binomial
• Geometric Distributions
• Continuous Probability Distributions
• Normal and Standard Normal Distributions
• T and F Distributions
• Exponential Distributions
Binomial Random Variable and
Distribution
 Binomial
Distributions
• These are the distributions used to define a special class of random processes called Bernoulli
processes

• The probability of obtaining specific outcomes in a Bernoulli process is described by the binomial
probability distribution

• In order to be a Bernoulli process as experiment must have the following characteristics:

Binomial
Distributions
Binomial
Distributions
Binomial
Distributions
 Example- Binomial
Distribution
MSA Co. is experimenting with the manufacture of a new type of product that is very difficult to
mass produce at an acceptable quality level. Every hour a supervisor takes a random sample of 5
produced items from the assembly line. The probability that any one item is defective is considered
to be 0.15. MSA wants to know the probability of finding 3, 4, or 5 defectives if the true percentage
defective is 15%.

Is it a Bernoulli process? How? Find the

required probabilities.
Find the statistics of process: mean and
standard deviation.
Example- Binomial
Distribution
Solution
Hypergeometric random Variable
and Distribution
 Hypergeometric
Experiment
A hypergeometric experiment is a statistical experiment that has the
following properties:

• A sample of size n is randomly selected without replacement from

a population of N items.

• In the population, K items can be classified as successes, and N - K items

can be classified as failures.

• In the sample, k items can be classified as successes, and n - k items can be

classified as failures.
Hypergeometric vs. Binomial
Experiment
Hypergeometric
Distribution
Example- Hypergeometric
Distribution
Poisson Random Variable and
Distribution
 Poisson Random
A Poisson experimentExperiment
is a statistical experiment that has the following properties:
• The experiment results in outcomes that can be classified as successes or failures.

• The average number of successes (μ) that occurs in a specified region is known.

• The probability that a success will occur is proportional to the size of the region.

• The probability that a success will occur in an extremely small region is virtually zero.

• Note that the specified region could take many forms. For instance, it could be a
length, an area, a volume, a period of time, etc.
 Poisson Random
Variable
• A Poisson random variable is the number of successes that result
from a Poisson experiment. The probability distribution of a Poisson
random variable is called a Poisson distribution.

• Given the mean number of successes (μ) that occur in a specified

region, we can compute the Poisson probability based on the
following formula:
Poisson
Distribution
Example-Poisson
Distribution