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Binomial Distribution

Ever flipped a coin and wondered, “What are the odds of getting exactly three heads in five tosses?” That simple question introduces the powerful Binomial Distribution.

Unit 5: Business Statistics and Research Methods

The binomial distribution is the first major discrete distribution students encounter. It models scenarios with fixed trials and binary outcomes like pass/fail decisions or success/failure results. It’s foundational for exams and real-life analytics.


What Is a Binomial Experiment?

A binomial experiment consists of n independent trials, each with only two outcomes: success or failure. We usually label success as "1" and failure as "0."

  • Number of trials (n) is fixed.
  • Each trial has the same probability of success, p.
  • Trials don’t influence each other.
  • We count the number of successes (X).

Assumptions & Conditions

Before using binomial distribution:

  1. Trials are independent.
  2. Each trial yields success or failure.
  3. Probability of success (p) remains constant.
  4. Total trials (n) are predetermined.

Binomial Formula

The probability of exactly k successes in n trials:

P(X = k) = C(n, k) × pᵏ × (1−p)ⁿ⁻ᵏ
  

Where C(n, k) = n! / [k! × (n − k)!] is the combination of n items taken k at a time.


Mean, Variance & SD

Key measures:

  • Mean (Expected Value): E(X) = n × p
  • Variance: Var(X) = n × p × (1−p)
  • Standard Deviation: σ = √[n × p × (1−p)]

Example

You toss a fair coin (p = 0.5) five times (n = 5). What’s the probability of getting exactly 3 heads?

  • X = number of heads; p = 0.5; q = 1 − p = 0.5
  • Use formula:
P(X = 3) = C(5, 3) × (0.5)³ × (0.5)²
         = 10 × 0.125 × 0.25
         = 0.3125
  

So there’s about a 31.25% chance of getting exactly 3 heads in 5 tosses.


Real-World Application

  • Pass/Fail: Predicting number of students passing an exam.
  • Quality Control: Number of defective items in a batch.
  • Marketing: Number of clicks from fixed ad impressions.

Summary

  • Binomial distribution models fixed-trial, two-outcome scenarios.
  • Assumes independence and constant success probability.
  • Its formula uses combinations and powers of success/failure rates.
  • Mean, variance, and SD are straightforward functions of n and p.
  • Critical in exams and real-life yes/no questions.

Reflection: Next time you see a poll or quality test stop and think: “Could I apply a binomial model here?” It might just clarify everything.

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