In a Binomial Distribution

question 33

Multiple Choice

In a binomial distribution

• A)the variable X is continuous.
• B)the probability of event of interest is stable from trial to trial.
• C)the number of trials n must be at least 30.
• D)the results of one trial are dependent on the results of the other trials.

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Definitions:

Annual Percentage Rate

A measure of the cost of credit, expressed as a yearly interest rate.

Annual Percentage Rate

The yearly interest rate charged on borrowed money, including fees and other costs associated with the loan.

Effective Annual Rate

Effective annual rate (EAR) is the actual return on an investment or real cost of a loan, considering compounding interest, expressed as an annual rate.

EAR

Effective Annual Rate, a measure of interest that accounts for compounding over a year, providing a more accurate depiction of financial product returns.