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How is the outcome of an experiment expressed
It is expressed as Bernoulli’s variable
There are two outcomes
1 = Outcome of interest
0 = No outcome of interest
What are the 5 rules of Binomial Probability Distribution
A single trial may result in exactly two events
Success
Failure
‘n’ such trials take place (n is fixed in advance)
For example, we will flip a coin twenty times
The trials are completely independent
The probability of a success does not change over trials (stationarity)
We are interested in the total number of successes occurring over the n trials
What does “stationarity’ refer to as it relates to binomial probability distribution ?
The probability of a success not changing over trials
What is necessary before constructing our probability distribution ?
We must have an initial assumption, a null hypothesis
This helps with defining what a success and a failure is
What is the formula to determine the probability of an outcome set ?
prq(n-r)
p= probability of a success
q= probability of a failure
r= number of successful trials
n= total amount of trials