Find the Standard Deviation of the Binomial Random Variable

question 23

Multiple Choice

Find the standard deviation of the binomial random variable.
-A company manufactures batteries in batches of 26 and there is a 3% rate of defects. Find the standard deviation for the random variable X, the number of defects per batch.

• A)0.883
• B)0.853
• C)0.87
• D)0.867

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Definitions:

Marginal Damage Cost

The additional cost incurred from producing one more unit of a good or service, which often relates to the negative externalities or damages caused by the increase in production.

Marginal Cost

The increase in total production cost that results from making one additional unit of a product.

Tradeable Pollution Permits

Tradable Pollution Permits are a market-based approach to controlling pollution by providing economic incentives for achieving reductions in the emissions of pollutants.

Government-Involved

Describes situations or sectors where the government plays a significant role in regulation, ownership, or provision of services.