Bernoulli trial

Bernoulli trial definition - finance
A random event that has three important characteristics. Its result must be a success or failure; the probability of a success must be the same for all trials, and the outcome of each trial must be independent of the other trialÂ’s outcomes. A coin toss would meet the requirements of a Bernoulli trial.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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