Determine Whether the Given Procedure Results in a Binomial Distribution

question 118

Multiple Choice

Determine whether the given procedure results in a binomial distribution. If not, state the reason why.
-Choosing 8 marbles from a box of 40 marbles (20 purple, 12 red, and 8 green) one at a time with replacement, keeping track of the colors of the marbles chosen.

• A) Not binomial: the trials are not independent.
• B) Not binomial: there are too many trials.
• C) Procedure results in a binomial distribution.
• D) Not binomial: there are more than two outcomes for each trial.

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Definitions:

Contribution Margin

The selling price per unit minus the variable cost per unit, used to determine how sales affect net income.

Sales Projections

Estimates of the future sales revenue of a company, which are often based on historical sales data, market trends, and other relevant factors.

NPV

Net Present Value, a calculation used to determine the value of an investment by discounting future cash flows to their present value.

Payback Analysis

A financial analysis method used to determine the time required to recoup the cost of an investment or project.