Binomial distribution
Binomial distribution gives the probability of exactly k successes in n independent trials each with success probability p. It applies when outcomes are binary, trials are fixed, and p is constant throughout.
See it move
An agent closes 30% of calls with a sale. Across 10 calls, the probability of exactly 3 sales follows the binomial formula: C(10,3) × 0.30³ × 0.70⁷ ≈ 0.267, about 27%. The distribution applies whenever outcomes are binary, trials are independent, the number of trials is fixed, and the success probability stays constant.
The formula
Variables
- Number of independent trials
- Number of successes (0, 1, 2, …, n)
- Probability of success on each trial
- Binomial coefficient: n! ÷ [k! × (n − k)!]
Conditions: binary outcomes, fixed n, constant p, independent trials.
Variables
- Expected number of successes
- Spread of the binomial distribution
Check yourself
A call-centre manager wants to model the number of calls out of the next 20 that result in a sale. She believes each call independently has a 30% chance of closing, regardless of what happened on previous calls. Under which conditions is the binomial distribution the correct model?