Abstract
Bernoulli process is a finite or infinite sequence of independent binary variables, X
i
, i = 1, 2, · · ·, whose outcome is either 1 or 0 with probability P(X
i
= 1) = p, P(X
i
= 0) = 1 – p, for a fixed constant p ∈ (0, 1). We will relax the independence condition of Bernoulli variables, and develop a generalized Bernoulli process that is stationary and has auto-covariance function that obeys power law with exponent 2H – 2, H ∈ (0, 1). Generalized Bernoulli process encompasses various forms of binary sequence from an independent binary sequence to a binary sequence that has long-range dependence. Fractional binomial random variable is defined as the sum of n consecutive variables in a generalized Bernoulli process, of particular interest is when its variance is proportional to n
2
H
, if H ∈ (1/2, 1).