I for a Binomial Distribution, Each Trial Has a Known

question 87

Multiple Choice

i. For a binomial distribution, each trial has a known number of successes. For example, a four
Question multiple-choice test can only have zero, one, two, three and four successes (number
Correct) .
ii. To construct a binomial probability distribution, the number of trials and the probability of success
Must be known.
iii. A binomial distribution has a characteristic that the trials are independent, which means that the
Outcome of one trial does not affect the outcome of any other trial.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) is a correct statement but not (ii) or (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Fiscal Year

A one-year period that companies and governments use for financial reporting and budgeting, which does not necessarily coincide with the calendar year.

Direct Write-Off Method

An accounting approach where uncollectible debts are written off directly against income at the time they are deemed nonrecoverable.

Bad Debts Expense

Bad debts expense represents the amount of receivables a company estimates it will not collect due to customer defaults.

Trade Receivables

Amounts owed to a business by its customers for goods or services delivered on credit.