The factorial moment-generating function of a discrete random variable X is given by
Show that the rth derivative of FX(t) with respect to t at t = 1 is μ'(r), the rth factorial moment defined in Exercise 11.
In the proof of Theorem 2 we determined the quantity E[X(X - 1)], called the second factorial moment. In general, the rth factorial moment of X is given by
Express μ'2, μ'3, and μ'4 in terms of factorial moments. 1
Theorem 2
The mean and the variance of the binomial distribution are