Given a Binomial Distribution with N Trials and Probability P $\le$

question 132

Multiple Choice

Given a binomial distribution with n trials and probability p of a success on any trial,a conventional rule of thumb is that the normal distribution will provide an adequate approximation of the binomial distribution if

• A) np \(\le\) 5 and n(1- p)\(\le\) 5
• B) np \(\ge\) 5 and np(1 -p)\(\ge\) 5
• C) np \(\ge\) 5 and n(1 -p)\(\ge\) 5
• D) None of these choices.

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Definitions:

Average Cost Method

An inventory valuation method that assigns the average cost of all similar items in the inventory until they are sold.

LIFO

LIFO, or Last In, First Out, is an inventory valuation method where the last items to be added to inventory are assumed to be the first ones sold.

Ending Inventory

The total value of a company's merchandise, goods, and products held at the end of an accounting period.

Sales Revenue

The income received by a company from its sales of goods or the provision of services.