Determine If It Is Appropriate to Use the Normal Distribution

question 131

Short Answer

Determine if it is appropriate to use the normal distribution to approximate a binomial distribution when n = 36 and p = 0.5.

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Definitions:

Payoff Matrix

A table that shows the payoffs for each player in a game for every possible combination of actions by the players.

Economic Profits

The financial gain achieved when revenues exceed both explicit and implicit costs.

Oligopoly Model

A market structure characterized by a few firms dominating the market, leading to strategic interactions in pricing and production.

Cournot

Refers to a model of duopoly competition in which companies choose quantity to produce independently, influencing the market price.