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binomial random variable
Counts how often a particular event occurs in a fixed number of trials
facts of binomial random variable
fixed number of trials (n)
the outcome of a trial is either a success or failure (has two outcomes)
the probability of success is the same for each trial (p)
trials are independent of one another
the parameters of the binomial distribution
n = number of trials
p = probability of success on each trial
q = probability of failure
x = number of successes
simulation study
A computer experiment that involves creating randomly generated data to understand behavior and the effectiveness of statistical methods
Relies on assumptions
central limit theorem (CLT)
As the sample size gets larger (n), the sampling distribution of the sample mean becomes approximately normal
Larger sample size = more normal sampling distribution
mean of sampling distribution = population mean
sampling distribution of X (sample mean)
the distribution of all possible sample means from repeated random samples of the same size
standard error
The standard deviation of the sampling distribution of the sample mean
measures how much sample means typically vary from the true population mean
standard error
SE = population standard deviation / square root of n (sample size)
as sample size (n) increase
standard error decreases