n. In statistics, a list or a function that describes the probabilities of the possible values of a random variable chosen by means of a Bernoulli sampling process. A Bernoulli process has three characteristics: each trial has only two possible outcomes—success or failure; each trial is independent of all other trials; and the probability of success for each trial is constant. A binomial distribution can be used to calculate the probability of getting a specified number of successes in a Bernoulli process. For example, the binomial distribution can be used to calculate the probability of getting a 7 three times in 20 rolls of a pair of dice. Also called: Bernoulli distribution.
Investopedia Financial Terms
A probability distribution that summarizes the likelihood that a value willtake one of two independent values under a given set of parameters or assumptions. The underlying assumptions of the binomial distribution are that there is only one outcome for each trial, that each trial has the same probability of success and that each trial is mutually exclusive.
Abinomial distribution summarizes the number of trials, or observations, when each trial has the same probability of attainingone particular value. For example, flipping a coin would create a binomial distribution. This is becauseeach trial can only take one of two values (heads or tails),each success has the same probability (i.e. the probability of flipping a head is 0.50) and the results of one trial will not influence the results of another.
