INDEX : -

TOPIC PAGE NO
1-2
APPLICATION OF BINOMIAL
DISTRIBUTION
3-4
APPLICATION OF POISSON
DISTRIBUTION
5-6
APPLICATION OF NORMAL
DISTRIBUTION
7
BIBLIOGRAPHY

DATE:19/12/2009

Binomial Distribution
Definition

Frequency distribution where only two (mutually

exclusive) outcomes are possible, such as better or
worse, gain or loss, head or tail, rise or fall, success or
failure, yes or no. Therefore, if the probability of success
in any given trial is known, binomial distributions can be
employed to compute a given number of successes in a
given number of trials. And it can be determined if an
empirical distribution deviates significantly from a typical
outcome. Also called Bernoulli distribution after its
discoverer, the Swiss mathematician Jacques Bernoulli
(1654-1705).

Application of binomial distribution

One would use binomial distribution if and only if the experiment
satisfies the following conditions
1. There is a fixed number of trials.
2. Each trial is independent of one another.
3. There are only two possible outcomes (a Success or a Failure).
4. The probability of success, p, is the same for every trial.

An example of an experiment that has a binomial distribution would

be a coin toss.

1. You would toss the coin a n (a fixed number) times.

2. The result of a a previous toss does not affect the present toss (trials
are independent).
3. There are only two outcomes - Heads or Tails.
4. The probability of success (whether a head is considered a success or
a tail is considered a success) is constant at 50%.

1.Presents an application of the binomial distribution in which the

distribution is used to detect differences between the sensory
properties of food products. Included is a BASIC computer program
listing used to generate triangle and duo-trio test results.

2.The binomial distribution is used to analyse the error in experimental

results that estimate the proportion of individuals in a population that
satisfy a condition of interest.

Example (1994): Suppose the population is women at least 35 years of

age who are pregnant with a fetus afflicted by Down syndrome, and the
condition of interest is testing positive on a non-invasive screening test
for Down syndrome. The experiment is to take a random sample of 54
such women and see how many test positive. Since the experimental
result is the number X of subjects that test positive, the sample space is
{0,1,...,54}.

In one such experiment completed in 1994, X=48 of 54 women tested

positive so we estimate that 48/54 = 89% of women in the population
would test positive. How accurate is .89 as an estimate of the true
proportion p of women in the population who would test positive?
This question is traditionally answered by giving a 95% confidence
interval, .89 ± 1.96σ, where σ is the standard deviation of the estimate
X/54 of p. Since the probability distribution of X is Bin(54,p), the
standard deviation of X/54 is the square root of p(1-p)/54. Solve
 Poisson Distribution

Definition

Discrete random variable distribution that expresses

probabilities concerning the number of events per unit
time. Unlike normal distribution, it is not symmetrical but
instead is skewed to the left of the median. Good for
inspection sampling, it is employed where the probability
of an event is small and the number of opportunities for
the event is large, such as the number of misprints in a
book. Poisson distribution is an extension of binomial
distribution and can be used as its approximation. One
of its unusual properties is that its standard deviation
equals the square root of the mean. Discovered in 1837
by the French mathematician Siméon-Davis Poisson
(1781-1840).

Aplication of Poisson Distribution

The Poisson is used in practice in a wide variety of problems where
there are infrequently occurring events with respect to time area, volume
or similar units. Some practical situations in which Poisson Distribution
can be used are given below
1.it is used in quality control statistic to count the number of defects of
an item.

2.In biology to count the number of bacteria.

3.In physics to count the number of particles emitted from a radioactive

substance.

4.In insurance problems to count the number of casualties.

5.In waiting-time problems to count the number of incoming telephone

calls or incoming customers.

6.Number of traffic arrivals such as trucks at terminals, aeroplanes at

airport, ships at docks and so forth.

7.In determining the number of deaths in a district in a given period, say,

a year, by a rare disease.

8.The number of typographical errors per page in typed material,

number of deaths as a result of road accidents.
9.In probability dealing with the inspection of manufactured products
with the probability that any one piece is defective is very small and the
lots are very large.
10.To model the distribution of the number of persons joining a queue(a
line) to receive a service or purchase of a product.

Normal Distribution

Definition

Bell-shaped symmetrical frequency distribution curve. It is

characteristic of many economic, natural, social, and
other real world phenomenon (such as IQ scores, height
variation within a population, weights of crop yields,
variation in quality of manufactured goods) where two or
more variables have direct relationship and high
predictability (low variation). In normal distribution,
extremely-large values and extremely-small values are
rare and occur near the tail ends. Most-frequent values
are clustered around the mean (which here is same as
the median and mode) and fall off smoothly in either
side of it. In normal distribution, 68 percent of all values
lie within one standard deviation, 95.45 percent within
two standard deviations, and 99.8 within three standard
deviations (called six sigma in quality control). In other
words, only one out of a thousand values will fall outside
of six sigma. This distribution is called 'normal' in the
sense of 'ideal' or 'standard' against which other
distributions may be compared.

Application of Normal Distribution

Universality:- This distribution is an universal distribution because

except certain conditions almost in all areas nature of frequency
distribution in normal.

Study of Natural Phenomenon:- Almost all natural phenomenon

possesses the features of normal distribution such as height of adults,
length of leaves of a tree, etc. Therefore, the normal distribution is
widely used in the study of natural phenomenon.
Approximation to Binomial and Poisson Distribution:- The normal
distribution serves as a good approximation to binomial and Poisson
distribution particularly when the number of observations increases. It
may be mentioned that for large values of n, computation of probability
for discrete discrete distributions becomes difficult and in such cases
normal distribution can be used with great case and convenience.

Conformity of Sampling Distributions:- Almost all the exact sampling

distributions, e.g. Student’s t-distribution, Snedecor’s F
DISTRIBUTION AND THE Chi-square distribution conform to normal
distribution to normal distribution for large degree of freedom.

(5)Basis of small samples- The whole theory of small sample is based

on the fundamental assumption that the parent population from which
the samples have been drawn follows normal distribution.
(6)Statistical Quality Control-It is very useful in statistical quality
control where the control limits are set by using this distribution.
 BIBLIOGRAPHY: -

J.M.D (Mr. Satendra Bhardwaj)

BUSINESS DICTIONARY.COM

 GOOGLE.COM