PsiBinomial Distribution

PsiBinomial (n,p,...)

PsiBinomial (n,p) is a discrete distribution of the number of successes in n independent ‘Bernoulli Trials’ (experiments with exactly two possible outcomes), where p is the success probability in each trial. The Binomial distribution can be used to model the number of winning trades in a trading system, or the number of defective items in a batch.

A random variable X is defined by X ~ PsiBinomial (n,p) if and only if n-X ~ PsiBinomial (n,1-p).

The Poisson distribution with parameter λ is a good approximation of the PsiBinomial (n,p) distribution when n → ∞ and p → 0 , with λ = np .