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Binomial Distributions

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<strong>Binomial</strong> <strong>Distributions</strong><br />

Unlike normal distributions which are continuous, the binomial distributions is discrete. Discrete<br />

distributions provide nice bridges linking frequency histograms with probability, on the way to<br />

understanding probability with continuous distributions.<br />

The most basic element of a binomial distribution is a Bernoulli experiment.<br />

A Bernoulli experiment is a simple experiment with only two possible outcomes. This could be<br />

something like flipping a coin (heads or tails). It could also be something like rolling a die and<br />

getting a three. Here, our experimental outcome is three or everything else (1,2,4,5,6).<br />

Almost any phenomenon can be reduced to a binomial outcome. We denote these outcomes<br />

success and failure, although there is no implied normative meaning. So, for instance, taking a<br />

treatment for cancer either leads to an improvement or not. If we are interested in the<br />

likelihood that a treatment does not improve a cancer patients condition, success is failure to<br />

treat the disease.<br />

Success is normally noted as p; failure as q.<br />

Since there are only two outcomes, we know that the sum of the two probabilities must equal 1,<br />

or p + q = 1. Furthermore, q = 1-p and p = 1-q. The binomial distribution is known as a one<br />

parameter distribution. This is because if you know one outcome, you implicitly know the<br />

other.<br />

A binomial experiment is a number of independent Bernoulli experiments.<br />

Specifically, a binomial experiment has the following properties.<br />

• The experiment consists of n identical trials.<br />

• Each trial results on one of two possible outcomes.<br />

• The probability of success on a single trial, p, is invariant across trials, and q = 1 - p.<br />

• The trials are independent.<br />

• We are interested in X, the number of successes in n trials.<br />

The number of successes, r, represents a binomial variable. What is interesting about this<br />

variable is that we can associate a probability with each outcome, r, and derive a probability<br />

distribution.


Let's look at an easy example. If we toss a fair coin, defining getting a head on a toss as success,<br />

we know that p = 0.5 and q = 0.5. We propose to flip this coin four times; this is our binomial<br />

experiment. Each flip of the coin, or trial, constitutes a Bernoulli experiment.<br />

How do we enumerate success? We know that in four flips of the coin that there are five possible<br />

values of r; 0, 1, 2, 3, and 4. The binomial distribution associates a probability with each of<br />

these outcomes. So, for instance, what is the probability that r equals 4 [p(r=4)]? This is<br />

asking what is the probability of p(H and H and H and H). This is equal to (q)(q)(q)(q) = p 4 =<br />

0.5 4 = 0.0625. Thus, there is a 6.25% chance of tossing a coin four times and observing a head<br />

on each toss.<br />

What about getting one head and three tails [p(r=1)]? How many ways are there to get one head<br />

and three tails? We can list them as follows:


H T T T<br />

T H T T<br />

T T H T<br />

T T T H<br />

There are 4 ways to get 1 success<br />

and they have equal<br />

probability<br />

p(HTTT) = (p)(q)(q)(q) = pq 3 = (0.5)(0.5 3 ) = 0.0625<br />

p(THTT) = (q)(p)(q)(q) = pq 3 = (0.5)(0.5 3 ) = 0.0625<br />

p(TTHT) = (q)(q)(p)(q) = pq 3 = (0.5)(0.5 3 ) = 0.0625<br />

p(TTTH) = (q)(q)(q)(p) = pq 3 = (0.5)(0.5 3 ) = 0.0625<br />

Summing these independent probabilities we get 0.0625+0.0625+0.0625+0.0625 = 0.25. Thus,<br />

there is a 25% chance that in four flips, we observe a single head.


We can also use this method to calculate all the other probabilities for the values of r. But, there<br />

is a shortcut. What we are actually asking is, given 4 trials, how many ways can we distribute r<br />

successes across these trials. This then becomes a simple combination problem. The formula<br />

for combinations is:<br />

⎛n⎞<br />

⎜ ⎟ =<br />

⎝ r ⎠<br />

n!<br />

r!( n − r)!<br />

So, given all the possible values of r, we get:<br />

r<br />

0<br />

1<br />

2<br />

3<br />

4<br />

Combinations<br />

⎛4⎞<br />

⎜ ⎟ =<br />

⎝0<br />

⎠<br />

0!<br />

⎛4⎞<br />

⎜ ⎟ =<br />

⎝1⎠<br />

1!<br />

⎛4⎞<br />

⎜ ⎟ =<br />

⎝2<br />

⎠ 2!<br />

⎛4⎞<br />

⎜ ⎟ =<br />

⎝3⎠<br />

3!<br />

⎛4⎞<br />

⎜ ⎟ =<br />

⎝4<br />

⎠<br />

4!<br />

4!<br />

= 1<br />

0 !<br />

( 4 − )<br />

4!<br />

= 4<br />

1 !<br />

( 4 − )<br />

4!<br />

= 6<br />

2 !<br />

( 4 − )<br />

4!<br />

= 4<br />

3 !<br />

( 4 − )<br />

4!<br />

= 1<br />

4 !<br />

( 4 − )<br />

We can also use a general formula to calculate the individual probabilities associated with any one<br />

outcome of r. This formula is:<br />

p r q n-r<br />

Putting both this formula and that for combinations together, we get:<br />

⎛n⎞<br />

⎜ ⎟ p<br />

⎝ r ⎠<br />

r<br />

q<br />

n−r


⎛n⎞<br />

⎜ ⎟ p<br />

⎝ r ⎠<br />

r<br />

q<br />

n−r<br />

So, the full binomial probability distribution for this problem is given as:<br />

p(r) <strong>Binomial</strong> Probability<br />

⎛4⎞<br />

⎟⎠<br />

⎝0<br />

0<br />

4<br />

p(0) ⎜ ( 0.5 )( 0.5 )<br />

⎛4⎞<br />

⎟⎠<br />

⎝1<br />

1<br />

3<br />

p(1) ⎜ ( 0.5 )( 0.5 )<br />

⎛4⎞<br />

⎟⎠<br />

⎝2<br />

2<br />

2<br />

p(2) ⎜ ( 0.5 )( 0.5 )<br />

⎛4⎞<br />

⎟⎠<br />

⎝3<br />

p(3) ⎜ ( 0.5 )( )<br />

3 0. 5 1<br />

⎛4⎞<br />

⎟⎠<br />

⎝4<br />

4<br />

0<br />

p(4) ⎜ ( 0.5 )( 0.5 )<br />

0.0625<br />

0.2500<br />

0.3750<br />

0.2500<br />

0.0626<br />

0.50<br />

<strong>Binomial</strong> Distribution<br />

(n=3, p=0.33, q=0.67)<br />

Probability of Successe<br />

0.40<br />

0.30<br />

0.20<br />

0.10<br />

0.00<br />

0 1 2 3 4<br />

Number of Successes

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