If You Are Conducting an Experiment Where the Probability of a Success

question 47

Multiple Choice

If you are conducting an experiment where the probability of a success is .02 and you are interested in the probability of two successes in 15 trials, the correct probability function to use is the _____.

• A) standard normal probability density function
• B) normal probability density function
• C) Poisson probability function
• D) binomial probability function

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Definitions:

Stock Options

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a stock at a predetermined price within a specified time frame.

Diluted Earnings

Earnings per share calculated under the assumption that all convertible securities have been converted into common stock, providing a "worst case" scenario perspective on earnings per share.

Ownership Perspective

An approach or mindset focusing on the long-term benefits and responsibilities of owning an asset or investment.

GAAP

Generally Accepted Accounting Principles, a framework of accounting standards, principles, and procedures from which financial statements are prepared in the United States.