Which of the Following Probability Distributions Would Most Likely Be

question 74

Multiple Choice

Which of the following probability distributions would most likely be used to describe the time between failures for electronic components?

• A) Binomial distribution
• B) Exponential distribution
• C) Uniform distribution
• D) Normal distribution

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Definitions:

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset or instrument at a specified price within a specific time period.

Stock Price

The cost per share at which a company's stock is bought and sold in the stock market.

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash payments or additional stock.

Selling Price

The price at which goods or services are offered to buyers.