Find the Standard Deviation of the Binomial Random Variable

question 12

Multiple Choice

Find the standard deviation of the binomial random variable.
-The probability that a radish seed will germinate is 0.7. A gardener plants seeds in batches of 11. Find the standard deviation for the random variable X, the number of seeds germinating in each
Batch.

• A)1.52
• B)1.502
• C)1.432
• D)1.449

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Definitions:

Pre-Tax Cost

The expense or cost of an item or service before any taxes are applied.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess profitability of investments.

After-Tax Cost

The actual cost of an investment or financing after taking into account the effects of taxation.

Cost of Equity

The theoretical compensation a company provides to its shareholders for the risk associated with investing their money.