Outline of Chapter 5 text - Elementary Statistics: A Brief Version(A. Bluman 3rd Ed., 2003)

Chapter 5 Outline Objectives Construct a probability distribution for a random variable. Find the mean, variance, and expected value for a discrete random variable. Find the exact probability for X successes in n trials of a binomial experiment. Objectives (cont'd.) Find the mean, variance, and standard deviation for the variable of a binomial distribution. Find probabilities for outcomes of variables using the Poisson, hypergeometric, and multinomial distributions. Introduction Many decisions in business, insurance, and other real-life …

…distribution. Expectation is used in insurance and games of chance. Summary (cont'd.) The binomial distribution is used when there are only two outcomes for an experiment, a fixed number of trials, the probability is the same for each trial, and the outcomes are independent of each other. Conclusion Many decisions in business, insurance, and other real-life situations are made by assigning probabilities to all possible outcomes pertaining to the situation and then evaluating the results.