# Binomial Distribution

## Definition

### Health Economics

- A distribution used with discrete random variables. When a fair coin is flipped, the outcome is one of two mutually exclusive possibilities: heads or tails. If a coin is flipped n times, then the binomial distribution can be used to determine the probability of obtaining exactly r heads in the n outcomes. The formula that is used assumes that the observations are dichotomous, mutually exclusive, independent and randomly selected.

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