The binomial distribution is a subtype of the multinomial distribution. In finance, the multinomial distribution can be used to estimate the probability of a set of occurrences and analyze the ...

A binomial tree is a graphical representation of possible intrinsic values that an option may take at different nodes or time periods.

We examine how the binomial distribution B (n, p) arises as the distribution Sn = ∑i=1n Xi of an arbitrary sequence of Bernoulli variables. It is shown that B (n, p) arises in infinitely many ways as ...

The number of jackpot winners in a lottery is a textbook example of a binomial distribution, a formula from basic probability theory. If we repeat some probabilistic process some number of times ...