BINOMIAL AND RELATED

DISTRIBUTIONS
Osama Bin Ajaz

OVERVIEW
Bernoulli

distribution

Binomial distribution
Multinomial
Beta

distribution

binomial distribution

Correlated
Testing

Binomial Distribution

goodness of fit of binomial distribution using C

() procedure.

References

BERNOULLI DISTRIBUTION
A

random variable X is defined to

have a Bernoulli distribution if the
discrete density function of X is
given by

Where

the parameter p satisfies

0p1,
1-p is often denoted
by q.

CONTD.
If

X has a Bernoulli distribution,

then

E[x]

=p,
var [x] =pq,
Mx (t) =pet + q.

BINOMIAL EXPERIMENT
A

Bernoulli experiment is
performed n times.
The trials are independent.
The probability of success on
each trial is a constant p; the
probability of failure is q=1-p.
The random variable X equals the
number of successes in the n
trials.

BINOMIAL DISTRIBUTION

The

mean, variance and MGF of

binomial distribution are:
=np
2=npq
Mx (t) =
(q+pet) n
respectively

MULTINOMIAL DISTRIBUTION
if

each trial in an experiment has more

than two outcomes; a multinomial
distribution must be used.

For

example, a survey might require

the responses of approve,
disapprove, or no opinion.

MULTINOMIAL DISTRIBUTION
(CONTD.)
The

multinomial distribution can be used

for such situations.

If

the probabilities for each trial remain

constant .

The

outcomes are independent for a fixed

number of trials.

The

events must also be mutually

exclusive.

MULTINOMIAL DISTRIBUTION
(CONTD.)

If X consists of events E1, E2, E3, . . . , Ek, which have

corresponding probabilities p1, p2, p3, . . . , pk of
occurring, and X1 is the number of times E1 will occur,
X2 is the number of times E2 will occur,X3 is the
number of times E3 will occur, etc., then the
probability that X will occur is

Where X1 + X2 + X3 + . . . + Xk = n and p1 +p2 +p3

+ . . . + pk = 1

Beta binomial distribution

If the probability of success parameter, p, of a

Binomial distribution has a beta distribution with
shape parameters > 0 and > 0, the resulting
distribution is known as a beta binomial distribution.

f(x) = f(x; n, ,
) =

I{0,1 , , n}
(x)

If ==1, then the beta binomial distribution

reduces to a discrete uniform distribution over the
integers 0, 1 n

Correlated Binomial Distribution

CB

is the generalization of
binomial distribution. The
distribution with pmf:

Where

is the covariance between

binary responses
When = 0 then it reduces to
binomial distribution.

Contd.
Its

mean and variance are:

E[x]

= np

VAR[x]

= np (1-p) + n(n-1)

Altham-multiplicative binomial
distribution
Its

pmf is:

X=0,1,2,n
a0
0p1

Testing Goodness of Fit of

Binomial Distribution
R.

E. Tarone derive the test for

goodness of fit of binomial
distribution using C () Procedure of
Neyman, which are asymptotically
optimal against generalized binomial
alternatives.

C () test statistic for CB

will have an asymptotic chisquared distribution with one

degree of freedom.

C () test statistic for Beta Binomial

the

statistic Z will have an asymptotic

standard normal
distribution.

The C () test for Althams

multiplicative alternatives

Will have an asymptotic chi-squared

distribution with one degree of
freedom.

Monte Carlo Study

Empirical

significance levels for the C()

homogeneity tests optimal against
correlated binomial and variance test, based
on 1500 replications for underlying binomial
probabilities of 0.10, 0.25 and 0.50

CONTD.
the empirical significance levels for
the

CB C() statistic are

significantly lower than the
nominal level for the 5% and 10%
critical values.

The

1% critical value show no

consistent pattern.

Asymptotic Relative
Efficiencies

Pitman asymptotic relative efficiencies of

the variance test and the generalized
binomial C () tests for correlated
binomial and multiplicative alternatives
Test statistic

Model under alternative

Correlated binomial

Multiplicative generalized
binomial

X2v

0.95

0.71

X2c

1.00

0.82

X2m

0.79

1.00

the correlated binomial C () test is more

efficient than the variance test for multiplicative
alternatives as well as for correlated binomial
alternatives.

References

Alexander M. Mood, Franklin A. Graybill and Duane C.

Boes, Introduction to the theory of statistics, third
edition, McGraw-Hill series in probability and statistics.

Hogg, McKean and Craig, Introduction to Mathematical

Statistics (2013), seventh edition, Pearson education,
Inc

Robert V. Hogg, Elliot A. Tennis, Jagan Mohan Rao,

Probability and Statistical Inference, seventh edition,
Pearson Education

Tarone, R. E. (1979), Testing the goodness of fit of

binomial distribution, Biometrika 66, 585 590

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THANK YOU