Friday, 29 November 2013

Binomial Probability

In 2011, Donald Smith from Victoria University asked me a question about computing gambling outcomes using Mathematica. I generated a CDF examining three cases.

Probability of correctly selecting 1 from m from n goes, with vertical lines at the expected average, and the break-even line when paying odds of p:1:


For larger samples the abscissa indicates percentages, which keeps the average and break-even lines in the same place for comparison purposes:


Use RandomVariate to randomly select 10k samples from BinomialDistribution, plotting the results and expected results onto percentage abscissa:

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