Program : MBA

Semester : III
Subject Code : QM0012
Book ID : B1242
Subject Name : Statistical Process Control and Process
Capability
Unit number :5
Unit Title : Probability Distributions
Lecture Number :5
Lecture Title : Probability Distributions

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 Unit-5 Probability Distributions

Probability Distributions

Objectives :

• Explain the concept of Random variables

• Discuss Binomial, Poisson and Normal Distribution

• Describe Standard Normal Variate

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Unit-5 Probability Distributions

Lecture Outline

• Introduction
• Random Variables
• Types of Probability Distribution
• Binomial Distribution
• Assumptions of Binomial Distribution
• Poisson Distribution

• Assumptions of Poisson Distribution

• Normal Distribution

• Characteristics of Normal Distribution

• Standard Normal Variate

• Summary
• Check your Learning
• Activity

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 Unit-5 Probability Distributions

Introduction

• The probability distribution describes the range of possible values that

a random variable can attain and the probability that the value of the
random variable is within any (measurable) subset of that range.
• The concept of the probability distribution and the random variables
which they describe underlies the mathematical discipline of
probability theory
• Probability Distribution is a description of the possible values of a
random variable, and of the probabilities of occurrence of these values

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 Unit-5 Probability Distributions

Random Variables

• Random variable is a variable that assumes any value for every

occurrence of the event in a random experiment.
• A Random Variable is a function, which assigns unique numerical
values to all possible outcomes of a random experiment under fixed
conditions
• There are two types of random variables
 Continuous Random Variable
 Discrete Random Variable

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 Unit-5 Probability Distributions

Types of Probability Distributions

• Discrete probability distributions

• A discrete probability distribution consists of all possible values of a
discrete random variable along with their corresponding
probabilities

• Continuous probability distributions

• In a continuous probability distribution, the variable under
consideration assumes any value within a given range

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 Unit-5 Probability Distributions

Binomial Distributions

 Binomial distribution is a discrete probability distribution.

 Its probability mass function is given by:

• The binomial probability distribution is given by:

• The mean and variance of the distribution are ‘np’ and ‘npq’ respectively
• Some practical examples for Binomial distribution include:
 Number of defective items in a lot of ‘n’ items produced by a
machine
 Number of seeds germinating among 10 seeds sown
 Number of heads turned in tossing 8 coins

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 Unit-5 Probability Distributions

Assumptions for binomial distribution

• The experiment should be of dichotomous nature

• The probability of success should remain the same from
experiment to experiment
• Experiments should be conducted under identical conditions
• Experiments should be statistically independent

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 Unit-5 Probability Distributions

Poisson Distribution

• A Poisson experiment is a statistical experiment that has the following

properties:
 The experiment results in outcomes that can be classified as
successes or failures.
 The average number of successes (μ) that occurs in a
specified region is known.
• Poisson distribution is a discrete distribution, completely characterized
by one parameter ‘m’
• The probability distribution of a Poisson random variable X is given by:

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 Unit-5 Probability Distributions

Assumptions for Poisson Distribution

Poisson distribution can be applied under the following assumptions.

• The outcome of trial / experiment must be of dichotomous nature
• The probability of success must remain the same for trials
• The trials should be conducted under identical conditions
• The trials should be statistically independent
• The probability of success should be very small and ‘n’ should be
large such that ‘np’ is a constant m [Generally, p < 0.1 and n >
10]

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 Unit-5 Probability Distributions

Normal Distribution

• The normal distribution or Gaussian distribution is a continuous

probability distribution that often gives a good description of data that
cluster around the mean.
• The normal distribution is defined by the following equation:

where X is a normal random variable, μ is the mean, σ is the

standard deviation, π is approximately 3.14159, and e is
approximately 2.71828.

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 Unit-5 Probability Distributions

Characteristics of Normal Distribution

• Normal distribution is a continuous probability distribution

• Its mean is and standard deviation is  where and  are the
parameters of the distribution
• It is a bell-shaped curve and is symmetric about its mean
• The mean divides the curve into two equal portions

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 Unit-5 Probability Distributions

Standard Normal Variate

The Standard Normal variate, ‘Z’ is

given by:

Where,
•x is the value of random variable X
•μ is the mean of the distribution
random variable X
•σ is the standard deviation of this
distribution

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 Unit-5 Probability Distributions

Summary

• Probability Distribution is a description of the possible values of a random

variable, and of the probabilities of occurrence of these values

• A Random Variable is a function, which assigns unique numerical values to

all possible outcomes of a random experiment under fixed conditions

• Types of Probability Distribution are: Discrete and Continuous

• Binomial distribution is a discrete probability distribution.

• Probability mass function of Binomial Distribution is given by:

• The probability distribution of a Poisson random variable X is given by:

• The normal distribution is defined by the following equation:

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 Unit-5 Probability Distributions

Check your Learning

1. What is meant by Random Variable?

Ans. A Random Variable is a function, which assigns unique numerical values to
all possible outcomes of a random experiment under fixed conditions

2. What are the assumptions of Poisson Distribution?

Ans. The assumptions of Poisson Distribution are:
• The outcome of trial / experiment must be of dichotomous nature
• The probability of success must remain the same for trials
• The trials should be conducted under identical conditions
• The trials should be statistically independent
• The probability of success should be very small and ‘n’ should be large such
that ‘np’ is a constant m [Generally, p < 0.1 and n > 10]

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 Unit-5 Probability Distributions

Activity

Solve this:
The probability that an employee getting occupational disease is
20%. In a firm having five employees, what is the probability that:
1. None of the employees get the disease
2. Exactly two will get the disease
3. More than four will contract the disease

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