The binomial distribution is a discrete distribution displaying data that has only TWO OUTCOMES and each trial includes replacement.
HEADS / TAILS
Assumptions
1) Each trial has only two outcomes
2) The experiment has n identical trials
3) Each trial is independent of the other trials
4) The probability of getting one outcome (success) p is held constant and the probability of getting the other outcome (failure) is also held constant, (1 - p).
5) Includes replacement for each trial - can be used to approximate without replacement trials but it is suggested to use hypergeometric distribution formulas.
Let's evaluate the assumptions. A coin flip is an example of two outcomes and each flip has the same chance for both outcomes (meaning independent). Flipping the coin n amount of times means there are n identical trials. Nothing changes from one flip to another.

The following formula is used to compute the number of experimental outcomes resulting from x successes in n trials.

For example: 4! (4 factorial) = 4*3*2*1 = 24
The Binomial Distribution Probability Function is shown below:

Example One
A manufacturing process creates 3.4% defective parts. A sample of 10 parts from the production process is selected. What is the probability that the sample contains exactly 3 defective parts?
SOLUTION
There are two outcomes: Defective / Not-Defective, therefore the Binomial Distribution equation is applied.
p = 0.034
n = 10
then q = 1-p = 1 - 0.034 = 0.966 (96.6%)
Need the probability that x = 3.
Substitute the values into the Binomial Probability Function and solve:

Example Two
Forty-five percent of all registered voters in a national election are female. A random sample of 8 voters is selected. The probability that the sample contains 2 males is:
SOLUTION
55% are male and there are two outcomes: MALE / FEMALE
n = 8
p = 0.55 (55%)
q = 1-p = 0.45
Need the probability that x = 2

Example Three
79% percent of the students of a large class passed the final exam. A random sample of 4 students are selected to be analyzed by the school. What is the probability that the sample contains fewer than 2 students that passed the exam?
There are two outcomes: PASS / FAIL
p = 0.79
n = 4
Need the probability that x < 2.
Note that we need to compute p(x<2). So, it is necessary to add the P(x=0) to the P(x=1).
Each P(x=0) and P(x=1) must be calculated separately and added.
p(x<2) = p(x=0) + p(x=1)
Substitute the following values into the Binomial equation to find p(x=0):
n = 4
p = 0.79
q = 1 - p = 1 - 0.79 = 0.21
x = 0
PLUS
n = 4
p = 0.79
q = 1 - p = 1 - 0.79 = 0.21
x = 1

There is <1% chance of selecting fewer than 2 students that passed the exam when selecting 4 randomly when 79% passed.
There are also Binomial tables that can be used when the input variables are known (and found within the table).
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