Binomial Distribution
Also called: binomial, Bernoulli trials
The binomial distribution gives the probability of a number of successes in a fixed count of independent yes/no trials with constant probability. It's the mathematics behind the binomial option pricing tree, default counts in a loan book, and the chi-square backtest of VaR exceedances. As the number of trials grows it converges to the normal distribution, which is the central limit theorem's most visible case.
Formula
Mean = n × p, Variance = n × p × (1 − p)
Where this is taught
Definitions are the trailer. These free levels turn Binomial Distribution into something you play — one bite-size lesson, with worked examples, a quiz and XP.