Binomial Distribution

Posted in Operations and Supply Chain Terms, Total Reads: 2339

Definition: Binomial Distribution

A Bernoulli experiment is one in which the result can be either a success or a failure with a definite probability of success. Binomial distribution is a plot of the discrete probability distribution of the successes in n independent Bernoulli experiments.

The most important point to note here is that the n trials should be independent.

It is extensively used to model the number of successes in n independent draws with replacement and also has a lot of utility in the field of finance.

The distribution can be uniquely defined by the mean and the standard deviation.

A typical graph looks like as shown in the figure below

Browse the definition and meaning of more terms similar to Binomial Distribution. The Management Dictionary covers over 7000 business concepts from 6 categories.

Search & Explore : Management Dictionary

Share this Page on: