Session:4 Discrete Random Variables

Formula Review

Introductory Business Statistics | Leadership Development – Micro-Learning Session

Rice University 2020 | Michael Laverty, Colorado State University Global Chris Littel, North Carolina State University| https://openstax.org/details/books/introductory-business-statistics

4.1 Hypergeometric Distribution

h(x)=(Ax)(NAnx)(Nn)

()= 

4.2 Binomial Distribution

X ~ B(np) means that the discrete random variable X has a binomial probability distribution with n trials and probability of success p.

X = the number of successes in n independent trials

n = the number of independent trials

X takes on the values x = 0, 1, 2, 3, …, n

p = the probability of a success for any trial

q = the probability of a failure for any trial

p + q = 1

q = 1 – p

The mean of X is μ = np. The standard deviation of X is σ = npq−−−√

.

P(x)=n!x!(nx)!pxq(nx)

()=!!()!·() 

where P(X) is the probability of X successes in n trials when the probability of a success in ANY ONE TRIAL is p.

4.3 Geometric Distribution

P(X=x)=p(1p)x1

(=)=(1)1 

X ~ G(p) means that the discrete random variable X has a geometric probability distribution with probability of success in a single trial p.

X = the number of independent trials until the first success

X takes on the values x = 1, 2, 3, …

p = the probability of a success for any trial

q = the probability of a failure for any trial p + q = 1
q = 1 – p

The mean is μ = 1p

1.

The standard deviation is σ = 1  pp2−−−−√

1  2 = 1p(1p1)−−−−−−−−√

1(11) .

4.4 Poisson Distribution

X ~ P(μ) means that X has a Poisson probability distribution where X = the number of occurrences in the interval of interest.

X takes on the values x = 0, 1, 2, 3, …

The mean μ or λ is typically given.

The variance is σ2 = μ, and the standard deviation is
σ = μ−−√

 = .

When P(μ) is used to approximate a binomial distribution, μ = np where n represents the number of independent trials and p represents the probability of success in a single trial.

P(x)=μxeμx!

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