PPT-The Recursive Property of the Binomial Distribution

Background Historically the Binomial Distribution evaluation has been subject to approximation due to the laborious math involved When the product np is less than five a Poisson approximation is used When np is equal or greater than five a normal approximation is used. Zhang . Zhuozhuo. . Calum. Johnson . Waldemar. . Pietraszkiewicz. . The binomial model is a very useful and popular technique for pricing an option.. The binomial option pricing formula is based on assumption that the stock price follows a multiplicative binomial process over discrete intervals. . Introduction. You first met the Binomial Expansion in C2. In this chapter you will have a brief reminder of expanding for positive integer powers. We will also look at how to multiply out a bracket with a fractional or negative power. Karl L. Wuensch. Department of Psychology. East Carolina University. A Binomial . Experiment. consists of . n. identical trials.. each trial results in one of two outcomes, a “success” or a “failure.”. T.Jagannadha. . Swamy. Dept of . ECE,Griet. Random Variable. A random variable . x. takes on a defined set of values with different probabilities.. For example, if you roll a die, the outcome is random (not fixed) and there are 6 possible outcomes, each of which occur with probability one-sixth. . Using StatCrunch : Video : http://www.youtube.com/watch?v=7yEyVh5uH5Y The Binomial distribution applies when an event has two outcomes , success or failure, and is rep eated a certain number of t Md. Tanvir Al Amin, Lecturer, Dept. of CSE, BUET. CSE 411. Discrete Uniform Distribution. Uniform distribution inside a interval.. Say a random variable is equally likely to take value between i and j inclusive. What we learned last class…. We are not good at recognizing/dealing with randomness. Our “random” coin flip results weren’t streaky enough.. If B/G results behave like independent coin flips, we know how many families to EXPECT with 0,1,2,3,4 girls.. . and Exponential Distributions. 5. Introduction. Several specific distributions commonly occur in a variety of business situations:. N. ormal distribution—a continuous distribution . characterized . II. BINOMIAL DISTRIBUTIONS A. Binomial Experiments 1. A binomial experiment is a probability experiment that satisfies the following conditions: a. The experiment is repeated for a fixed number of independent trials. Binomial v. Geometric The primary difference between a binomial random variable and a geometric random variable is what you are counting. A binomial random variable counts the number of "successes" 6.3: Binomial and Geometric Random Variables After this section, you should be able to… DETERMINE whether the conditions for a binomial setting are met COMPUTE and INTERPRET probabilities involving binomial random variables Chapter 8. Warm up. Find each combination or permutation. . 5 C 2. 10 C 3. 10 P 3. 8.1 The Binomial Distribution. A . binomial experiment. . is . statistical . experiment. that has the following properties: . Sit with your group and choose a team name. Preferably something corny that has to do with statistics . Today’s game will test your strength, wit, knowledge, and endurance! Remember… HW Passes are at stake folks! May the force be with you!. Binomial Distribution 1. Binomial Distribution 2. Additional Problems on Binomial Distribution. More Visual Representation. Binomial Distribution Tends to Normal for Large n. Binomial Distribution Tends to Normal for p Close to 0.5.