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picture1_Market Ppt 67662 | Chapter 8


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File: Market Ppt 67662 | Chapter 8
learning goals grasp how unusual when viewed in the context of most non health care organizations us hospitals are where most of the activity is directed by somebody who is ...

icon picture PPTX Filetype Power Point PPTX | Posted on 28 Aug 2022 | 3 years ago
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                8.1 The Binomial 
                Distribution
                A binomial experiment is a statistical experiment 
                   that has the following properties: 
                   1.   The experiment consists of n repeated trials. 
                   2.   Each trial can result in just two possible outcomes. We 
                        call one of these outcomes a success and the other, a 
                        failure. 
                   3.   The probability of success, denoted by P, is the same 
                        on every trial. 
                   4.   The trials are independent; that is, the outcome on one 
                        trial does not affect the outcome on other trials.
                Discrete random variables only
                Example
                 Consider the following statistical experiment. You flip a 
                   coin 2 times and count the number of times the coin 
                   lands on heads. This is a binomial experiment because: 
                    1.  The experiment consists of repeated trials. We flip a coin 
                        2 times. 
                    2.  Each trial can result in just two possible outcomes - 
                        heads or tails. 
                    3.  The probability of success is constant - 0.5 on every trial. 
                    4.  The trials are independent; that is, getting heads on one 
                        trial does not affect whether we get heads on other trials.
       Notation
       x: The number of successes that result from the 
        binomial experiment. 
       n: The number of trials in the binomial experiment. 
       P: The probability of success on an individual trial. 
       Q: The probability of failure on an individual trial. 
        (This is equal to 1 - P.) 
       b(x; n, P): Binomial probability - the probability that 
        an n-trial binomial experiment results in exactly x 
        successes, when the probability of success on an 
        individual trial is P. 
                  Binomial or not?
          Tossing 20 coins and counting the number of heads.
             Yes
                 1.   Success is a heads, failure is a tails. 
                 2.   n = 20. 
                 3.   Independence is true – coins have no influence on each other. 
                 4.   p = 0.5 so X is B(20, .5). The possible values of X are the integers from 0 to 20.
          Picking 5 cards from a standard deck and counting the number of 
             hearts. We replace the card each time and reshuffle.
             Yes
                 1.   Success is a heart, failure is anything but a heart. 
                 2.   n = 5. 
                 3.   Independence is true. 
                 4.   p =.025 so X is B(5, .25). The possible values of X are the integers from 0 to 5.
          Picking 5 cards from a standard deck and counting the 
            number of hearts without replacing after each pick.
            No, b/c of independence issue
          Choosing a card from a standard deck until you get a 
            heart.
            No, b/c there are not a fixed number of observations
          It is estimated that 87% of computers users use 
            Explorer as their default web browser. We choose 50 
            computer users and ask their default browser.
            Yes – 
               1. Success is Explorer, failure is anything else. 
               2. n =50. 
               3. Independence seems logical. 
               4. p = 0.87 so X is B(50, .87). The possible values of X are 
                  the integers from 0 to 50.
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