Kaila Umbach Chapter 8 Summary The Binomial Setting -Each observation falls into one of just two categories,

success or failure. -There are a fixed number of observations. -The n observations are independent. -The probability of success is the same for each observation. Binomial Distribution The distribution of the count X of successes in the binomial setting is the binomial distribution with parameters n and p. The parameter n is the number of observations and p is the probability of success on any one observation. The possible values of X are whole numbers from 0 to n. As an abbreviation, we say that X is B(n, p). PDF Given a discrete random variable, X, the probability distribution function assigns a probability to each value of X. CDF Given a random variable, X, the cumulative distribution function of X calculates the sum of the probabilities 0, 1, 2 up to the value of X. That is, it calculates the probability of obtaining X success in n trials. Binomial Coefficient The number of ways of arranging k successes among n observations is given by the binomial coefficient.

Binomial Probability If X has the binomial distribution with n observations and probability p of success on each observation, the possible values of X are 1, 2, , n. If k is any of these values,

Mean and Standard Deviation of a Binomial Random Variable If a count X has the binomial distribution with number of observations n and probability of success p, the mean and standard deviation of X are:

Normal Approximation for Binomial Distributions

Suppose that a count X has the binomial distribution with n trials and success probability p. When n is large, the distribution of X is approximately normal. As a rule of thumb, we will use the normal approximation when n and p satisfy np10 and n(1-p)10. Geometric Setting -Each observation falls into one of just two categories, success and failure. -The probability of a success is the same for each observation. -The observations are all independent. -The variable of interest is the number of trials required to obtain the first success. Rule for Calculating Geometric Probabilities If X has a geometric distribution with probability p of success and (1-p) of failure on each observation, the possible values of X are 1, 2, 3, If n is any one of these values, the probability that the first success occurs on the nth trail is:

P(X = n) = (1-p)n-1p

The Mean and Standard Deviation of a Geometric Random Variable If X is a geometric random variable with probability of success p on each trial, then the mean, or expected value, of the random variable, that is, the expected number of trials required to get the first success, is = 1/p. The variance of X is (1-p)/p2 P(X>n) The probability that it takes more than n trials to see the first success is:

P(X>n) = (1-p)n