A Binomial Distribution with N Number of Trials, and Probability

question 48

True/False

A binomial distribution with n number of trials, and probability of success p can be approximated well by a normal distribution with mean np and variance if np > 5 and n(1-p) > 5.

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Definitions:

Negotiable Promissory Note

A financial document that contains a written promise to pay a specified sum of money to a named person or bearer under certain terms.

Worthless Securities

Financial instruments that have lost all monetary value, often resulting in a total loss for the holder.

Holder in Due Course

A legal term for a person who has acquired a negotiable instrument in good faith and for value, and thus has certain rights to it free from many defenses.

Restrictive Indorsement

A signature on a negotiable instrument, such as a check, that limits how the instrument can be used.