Bernoulli distribution is a special case of the Binomial distribution when which parameter equals 1?

Study for the SOA Fundamentals of Actuarial Mathematics (FAM) Exam. Prepare with flashcards and multiple choice questions with detailed explanations. Get ready for your future as an actuary!

Multiple Choice

Bernoulli distribution is a special case of the Binomial distribution when which parameter equals 1?

Explanation:
The key idea is that Bernoulli describes a single trial with two outcomes, typically labeled success or failure. The Binomial distribution counts the number of successes in a fixed number of independent Bernoulli trials with the same probability of success p. If you have only one trial, the number of successes can be either 0 or 1, with probabilities P(X=1)=p and P(X=0)=1-p. That is exactly the Bernoulli(p) distribution. So Bernoulli is the special case of Binomial when the number of trials is one. The other options don’t establish this equivalence: p being 0.5 is just a particular probability, not what collapses Binomial to Bernoulli, and lambda relates to Poisson, not Bernoulli/Binomial.

The key idea is that Bernoulli describes a single trial with two outcomes, typically labeled success or failure. The Binomial distribution counts the number of successes in a fixed number of independent Bernoulli trials with the same probability of success p. If you have only one trial, the number of successes can be either 0 or 1, with probabilities P(X=1)=p and P(X=0)=1-p. That is exactly the Bernoulli(p) distribution. So Bernoulli is the special case of Binomial when the number of trials is one. The other options don’t establish this equivalence: p being 0.5 is just a particular probability, not what collapses Binomial to Bernoulli, and lambda relates to Poisson, not Bernoulli/Binomial.

Subscribe

Get the latest from Passetra

You can unsubscribe at any time. Read our privacy policy