For the Binomial Distribution with the Given Values for N $\mathrm { n } = 19 \text { and } \mathrm { p } = 0.8$

question 84

Multiple Choice

For the binomial distribution with the given values for n and p, state whether or not it is suitable to use the normal
distribution as an approximation.
- $\mathrm { n } = 19 \text { and } \mathrm { p } = 0.8$

• A) Normal approximation is not suitable.
• B) Normal approximation is suitable.

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Definitions:

Equilibrium Price

The price at which the quantity of goods demanded is equal to the quantity of goods supplied, resulting in a stable market condition.

Surpluses

Surpluses occur when the quantity of a good or service supplied exceeds the quantity demanded, often leading to a decrease in prices.

Market Prices

The current prices at which goods and services can be bought or sold in a marketplace.

Rationing Function

The process by which the market system allocates goods and services to consumers when supply is limited.