Given a Binomial Distribution with N = 8 and P

question 150

Multiple Choice

Given a binomial distribution with n = 8 and p = 0.40, obtain the probability that the number of successes is within 2 standard deviations of the mean.

• A) 0.6887
• B) 0.7334
• C) 0.8665
• D) 0.933

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Definitions:

Loanable Funds

The market where savers supply funds for loans to borrowers.

Borrowers

Individuals or entities that take funds from a lender with the intention of paying back the borrowed amount plus interest.

Downsloping

A term describing a downward trend or decrease, often used in economics to refer to declining prices or demand curves that slope downwards as price increases.

Nominal Interest

is the stated interest rate of a loan or financial product, not adjusted for inflation, representing the face value of the interest charged or earned.