why is binomial distribution important 
binomial distribution is used to figure the probability of a pass or fail outcome in a survey or experiment replicated numerous times there are only two potential outcomes for this type of distribution more broadly distribution is an important part of analyzing data sets to estimate all the potential outcomes of the data and how frequently they occur forecasting and understanding the success or failure of outcomes is essential to business development the bottom linethe binomial distribution is an important statistical distribution that describes binary outcomes such as the flip of a coin a yes no answer or an on off condition understanding its characteristics and functions is important for data analysis in various contexts that involve an outcome taking one of two independent values it has applications in social science finance banking insurance and other areas for instance it can be used to estimate whether a borrower will default on a loan whether an options contract will finish in the money or out of the money or whether a company will miss or beat earnings estimates 