Historical Data Indicates That Only 20% of Cable Customers Are

question 156

Multiple Choice

Historical data indicates that only 20% of cable customers are willing to switch companies.If a binomial process is assumed,then in a sample of 20 cable customers,what is the probability that exactly 2 customers would be willing to switch their cable?

• A)0.1
• B)0.04
• C)0.137
• D)0.206
• E)0.794

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Definitions:

Bearish Signal

An indication in financial markets that the price of an asset is expected to decline.

Overweighting

Refers to the practice of allocating a larger percentage of a portfolio to a particular asset or sector than the benchmark or average portfolio.

Recent Performance

Refers to the latest outcomes or results of an investment's or financial instrument's activity over a short-term period.

Conventional Finance Theory

A framework in economics that explains the behavior of financial markets, including the dynamics of assets and securities pricing, investment portfolios, and market mechanisms.