Negative Binominal Distribution

Agenda • Definition
• Formula
• Properties
• Applications
2/2/20XX 2
Definition
It is the distribution of the sum of
independent geometric random
variables.

3
FORMULAE
Main formula
5
Probability mass function, mean and variance

6
PROPERTIES
 It has a total of n number of trials.
 Each trial has two outcomes, success and failure.
 Probability of success is denoted by p and failure by q.
 The sum of the probability of success and failure is equal to 1. p + q = 1.

7
The distribution graph illustrates the
probability of rolling the fifth six on
successive die rolls, starting from the sixth
roll. The highest probability, 0.03563,
occurs on the 24th roll, indicated by the
tallest bar. Before the 24th roll, the
likelihood of rolling the fifth six increases
with each successive roll. After the 24th
roll, the probability decreases as it's more
probable to have already rolled five sixes.
The graph doesn't display the probability
of rolling the fifth six on the first five rolls
due to its low likelihood. It stops at the
81st roll as the probability becomes too
low to display accurately.
8
APPLICATIONS
 Biostatistics: Negative binomial distribution models the occurrence of events (e.g.,
disease outbreaks) in a fixed time or space, considering varying rates. For instance, it
can estimate the number of disease cases in a population over time.
 Ecology: Negative binomial distribution predicts the distribution of species individuals
in an area, aiding in studying species abundance and diversity. For example, it can
model the number of individuals of a species in a habitat based on environmental
factors.
 Insurance and Risk Management: Negative binomial distribution is employed to model
the frequency of insurance claims or losses within a timeframe or among insured
individuals. This assists in evaluating and managing risks by estimating probabilities of
rare but costly events like accidents or disasters.

9
Thank you

10