Browse Definitions :
Definition

# binomial distribution

Binomial distribution, in mathematics and statistics, is the probability of a particular outcome in a series when the outcome has two distinct possibilities, success or failure. The prefix bi means two. Binomial distributions have many uses in business. For example, they may be used to predict the number of defective products in a product run (pass/fail inspection) or the ability a data center has to carry out its functions effectively (estimating uptime/downtime). Once the likely outcome for a series has been determined, that information can be used to create an action plan. For example, if a binomial distribution is used to predict the likelihood that a borrower will default on a loan or pay it back, that information can be used to determine if the load should be granted.

Binomial distributions are discrete and can be used to model the total number of successes in repeated trials as long as each trial is independent and the probability of getting either outcome remains constant. Determining the probability of a single, particular outcome is only valid if the experiment is repeated.

Perhaps the most common model for learning about binomial distribution is a coin toss. In this tutorial from the Khan Academy, the instructor demonstrates how to calculate the binomial distribution of a fair coin toss, when the coin is tossed five times.

This was last updated in October 2018

• man in the browser (MitB)

Man in the browser (MitB) is a security attack where the perpetrator installs a Trojan horse on the victim's computer that is ...

• Patch Tuesday

Patch Tuesday is the unofficial name of Microsoft's monthly scheduled release of security fixes for the Windows operating system ...

• parameter tampering

Parameter tampering is a type of web-based cyber attack in which certain parameters in a URL are changed without a user's ...

• chief procurement officer (CPO)

The chief procurement officer, or CPO, leads an organization's procurement department and oversees the acquisitions of goods and ...

• Lean Six Sigma

Lean Six Sigma is a data-driven approach to improving efficiency, customer satisfaction and profits.

• change management

Change management is a systematic approach to dealing with the transition or transformation of an organization's goals, processes...

• clickstream data (clickstream analytics)

Clickstream data and clickstream analytics are the processes involved in collecting, analyzing and reporting aggregate data about...

• neuromarketing

Neuromarketing is the study of how people's brains respond to advertising and other brand-related messages by scientifically ...

• contextual marketing

Contextual marketing is an online marketing strategy model in which people are served with targeted advertising based on their ...

Close