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:

Producer Surplus

The difference in earnings expected by producers for a good or service versus the actual payment received.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers is equal to the quantity supplied by producers, resulting in a balance without excess supply or demand.

Producer Surplus

The variance between the price producers want to sell an item for and the price they end up receiving.

Equilibrium Price

The price point at which the quantity of a good or service supplied equals the quantity demanded.