The Key Difference Between Binomial and Hypergeometric Distributions Is That

question 13

Multiple Choice

The key difference between binomial and hypergeometric distributions is that with the hypergeometric distribution the _____.

• A) probability of success must be less than .5
• B) probability of success changes from trial to trial
• C) trials are independent of each other
• D) random variable is continuous

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Definitions:

Excess Reserves

Funds that banks hold over and above the required reserve ratio set by a central banking authority, often for safety or emergency purposes.

Reserve Requirements

The minimum amount of reserves that a bank must hold as mandated by a central bank, affecting the bank's ability to lend.

Glass-Steagall Act

A 1933 law creating a regulatory firewall between commercial and investment banking sectors to prevent financial crises.

Investment Banking

A segment of banking that specializes in providing various financial-related and advisory services to individuals, corporations, and governments in relation to underwriting, capital raising, merger, and acquisition, and other transactions.