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 …showed first 75 words of 613 total…

…showed last 75 words of 613 total…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.