When N Is Reasonably Large and P Isn't Too Close

question 31

Multiple Choice

When n is reasonably large and p isn't too close to 0 or 1, the binomial distribution can be well approximated by which of the following distributions?

• A) uniform distribution
• B) normal distribution
• C) triangular distribution
• D) none of these choices

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Definitions:

Merchandise Purchases

The acquisition of goods for resale at a profit, a central activity of retail and wholesale businesses.

Lower of Average Cost or Market

An inventory valuation method where inventory is valued at either its average cost or market value, whichever is lower.

Cost-to-retail Percentage

A ratio used in inventory valuation that compares the cost of inventory to its retail price.

Freight-in Charges

Costs associated with transporting goods from the supplier to the buyer's location.