Important Probability Distributions Discrete Probability Distributions Binomial Distribution B(n,p)has been one of the oldest to have been the sub- ject of study in probability and statistics. It has wide applications in economics: -In quality control,for example,it can be used to approximate the distribution of the numbers of de- fective products in a total of n products each of which is probability p to be defective. It can also be used to model the cumulative num- ber of jumps occurred in financial price movements during a given period of time (e.g.,Das 2002). Important Probability Distributions Introduction to Statistics and Econometrics June25,2019 19/135Important Probability Distributions Important Probability Distributions Introduction to Statistics and Econometrics June 25, 2019 19/135 Binomial Distribution Discrete Probability Distributions