True or False: One of the Reasons That a Correction

question 25

True/False

True or False: One of the reasons that a correction for continuity adjustment is needed when approximating the binomial distribution with a normal distribution is because a random variable having a binomial distribution can have only a specified value while a random variable having a normal distribution can take on any values within an interval around that specified value.

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Definitions:

Compound Annual Return

The rate at which an investment grows annually over a specified period, taking into account the effect of compounding.

Diversified Canadian Equity Funds

Investment funds that spread their holdings across a wide range of Canadian stocks to mitigate risk and maximize returns.

Initial Investment

The initial amount of money put into a project, investment, business venture, or financial asset.

Compounded Monthly

A process where the interest earned on an investment is calculated and added to the principal each month, thus earning interest on interest.