The Hypergeometric Probability Distribution

question 100

Multiple Choice

The hypergeometric probability distribution:

• A) provides probabilities associated with possible values of a binomial random variable in situations in which these values are generated by sampling a finite population
• B) provides probabilities associated with possible values of a binomial random variable in situations in which sampling is done without replacement
• C) provides probabilities associated with possible values of a binomial random variable in situations in which the probability of success changes from one trial to the next
• D) is correctly described by all of these

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Definitions:

Stock Split

A corporate action that increases the number of shares in a company by dividing each share, which in turn reduces its price, making the stock more accessible to investors.

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout, increasing the number of shares owned by shareholders.

Prepaid Insurance

The portion of insurance premiums that has been paid in advance and is recognized as an asset on the balance sheet until the coverage period elapses.

Depreciable Lives

The estimated period over which a tangible asset is expected to be usable by a business, affecting its depreciation calculation.