X Is a Binomial Variable With $n = 6$ And $p = 0.4$

question 75

Multiple Choice

X is a binomial variable with $n = 6$ and $p = 0.4$ . Compute $P ( X = 4 )$ . Round your answer to five decimal places.

• A) \(P ( X = 4 ) = 0.13824\)
• B) \(P ( X = 4 ) = 0.4\)
• C) \(P ( X = 4 ) = 0.16667\)
• D) \(P ( X = 4 ) = 0.06144\)
• E) \(P ( X = 4 ) = 0.69984\)

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Definitions:

Precautionary Demand

The desire to hold cash or liquid assets as a safeguard against potential financial emergencies.

Speculative Demand

The demand for assets or goods not for their immediate consumption or use, but for the purpose of resale at a higher price in the future.

Transaction Demand

The demand for money as a medium of exchange, influenced by the level of economic activity.

Branch Banking

The operation of a banking service through multiple branches located in different areas, offering a wide range of services to customers across locations.