A statistics assignment (Binomial distribution)

Thread starter anonymousk
Start date Nov 16, 2013
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Assignment Binomial distribution Distribution Statistics

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SUMMARY

The forum discussion centers around a statistics assignment involving the binomial distribution of business bankruptcies in the construction sector (C-sector) in Denmark from 2009 to 2011. The average number of bankruptcies was 920 per year out of 32,100 companies, leading to an estimated probability of bankruptcy (P-hat) of 0.02866. Participants discussed the conditions for assuming a binomial distribution, the calculation of variance for the estimator of P-hat, and the implications of using a normal approximation for the distribution of bankruptcies in 2014. Key calculations included variance estimates and confidence intervals for P-hat and expected bankruptcies.

PREREQUISITES

Understanding of binomial distribution and its parameters
Familiarity with statistical variance and standard deviation calculations
Knowledge of confidence intervals and their significance
Basic proficiency in statistical notation and equations

NEXT STEPS

Learn about the Central Limit Theorem and its application to binomial distributions
Study the calculation and interpretation of confidence intervals in statistics
Explore the differences between binomial and normal distributions
Investigate the implications of sample size on variance and estimation accuracy

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Students in statistics courses, data analysts, and anyone involved in statistical modeling or analysis of business performance metrics.

Nov 24, 2013

anonymousk

Wrong? Np(1-p) and (N/Y) p(1-p) are both valid for the things they're valid for .

Haha!

No, we're not adding a variance for a number of bankruptcies to a variance for a probability! That would make no sense. We want to add two variance components for the number of bankruptcies, but one is a consequence of a variance for a probability. So it isn't p(1-p)/N or p(1-p)/NY. It will have the same order of magnitude as N. Neither is in itself the variance of the expected number in 2014. You have to add them to get that.
Sorry, but I don't feel you're reading my posts very carefully. I keep having to make the same points. I understand you're a bit fed up with this assignment. Would you prefer to do something else for a while and go back through the thread when you've more time? I'll still be here .

"consequence of a variance for a probability." and " It will have the same order of magnitude as N.". I feel like I'm sitting in a rowboat in the middle of the Atlantic ocean when reading this, haha!

I'm sorry. I've been skimming through your posts too often to count. I agree, tonight I've maybe not read your posts thoroughly (which is rude, since you put aside time to help me, so I apologize for that), but earlier this week I was struggling to understand it all. But I'm on a deadline. The assignment has to be delivered in 6 hours, and it's 05:53am here, so I have not much time haha. Oh well, I know where to find(pester) you when I'll receive my next assignment. ;)