From an Inventory of 48 New Cars Being Shipped to Local

question 277

Multiple Choice

From an inventory of 48 new cars being shipped to local dealerships,corporate reports indicate that 12 have defective radios installed.Which of the following distributions would you use to determine the probability that out of the 8 new cars it just received that,when each is tested,no more than 2 of the cars have defective radios?

• A)Hypergeometric distribution.
• B)Poisson distribution.
• C)Uniform distribution.
• D)Binomial distribution.

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Definitions:

American Put Options

Financial instruments that give the holder the right to sell a specified amount of an underlying asset at a set price before the option expires.

Call Option

A financial contract giving the buyer the right, but not the obligation, to purchase an asset or security at a predetermined price within a specific time frame.

In the Money

A term describing an option contract that has intrinsic value, where the strike price is favorable compared to the market price of the underlying asset.

Expected to Expire

Refers to assets or rights that have a limited time frame before they cease to be valid.