The binomial distribution is an important discrete distribution. It gives the probability of the number of "successes," in a sequence of n independent binary trials. This applet allows users to drag ...

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 ...

We investigate credit portfolio tranche pricing and highlight the sensitivity of credit portfolios to dependence. The Poisson binomial distribution is extended by introducing correlation and ...