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 situations are made by assigning probabilities to all possible outcomes pertaining to the situation and then evaluating the results.

Introduction (cont'd.)

This chapter explains the concepts and applications of probability distributions. In addition, special probability distributions, such as the binomial, multinomial, Poisson, and hypergeometric distributions are explained.

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