Which of the Following Is an Example of a Binomial

question 128

Multiple Choice

Which of the following is an example of a binomial experiment?

• A) A shopping mall is interested in the income level of its customers and is taking a survey to gather information.
• B) A business firm introducing a new product wants to know how many purchases its clients will make each year.
• C) A sociologist is researching an area in an effort to determine the proportion of households with a male head of household.
• D) A study is concerned with the average number of hours worked by high school students.
• E) All of these.

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Definitions:

Revenue Recognition Principle

The principle that companies recognize revenue in the accounting period in which the performance obligation is satisfied.

Merchandisers

Businesses that purchase and sell goods without significantly altering their form.

Performance Obligation

A duty or commitment that a company must fulfill to transfer a promised good or service to a customer.

Sales Returns And Allowances

Sales returns and allowances account for the reduction in sales revenues due to returned or defective products allowed by a company to its customers.