Assume That You Have a Binomial Experiment with P =

question 67

Multiple Choice

Assume that you have a binomial experiment with p = 0.5 and a sample size of 100. The expected value of this distribution is _____.

• A) 0.50
• B) 0.30
• C) 50
• D) Not enough information is given to answer this question.

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Definitions:

Safety Stocks

Additional quantities of stock kept in inventory to reduce the risk of stockouts caused by variations in supply or demand.

Average Inventory

Average Inventory is a calculation used to estimate the value or quantity of inventory that a business holds over a specific period, often used for analyzing inventory efficiency.

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used to assess the profitability of an investment.

Cash Sales Policy

A cash sales policy is a company's strategy to require payment for goods or services at the time of sale, which can improve cash flow and reduce credit risk.