In a Binomial Distribution
A)the Variable X Is Continuous $\pi$ Is Stable from Trial to Trial

question 37

Multiple Choice

In a binomial distribution

• A)the variable X is continuous.
• B)the probability of event of interest \(\pi\) 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:

Modigliani

Franco Modigliani, an economist known for his work in corporate finance, especially the Modigliani-Miller theorem regarding capital structure and the dividend irrelevance theory.

Miller

Often refers to a person who operates a mill, a machine to grind a cereal crop to make flour.

Risk

The exposure to potential financial loss or gain, often evaluated in decisions involving investment or finance.

Leverage

The strategy of using borrowed money to increase the potential return of an investment.