Which of the Following Best Describes the Binomial Probability Distribution

question 57

Multiple Choice

Which of the following best describes the binomial probability distribution?

• A) If is a probability distribution that shows the probabilities associated with possible values of a discrete random variable when these values are generated by sampling without replacement and the probability of success, therefore, changes from one trial to the next.
• B) It is a probability distribution that shows the probabilities associated with possible values of a discrete random variable when these values equal the number of occurrences of a specified event within a specified time or space.
• C) It is a probability distribution that shows the probabilities associated with possible values of a discrete random variable that are generated by a binomial experiment.
• D) It is a probability distribution that shows the probabilities associated with possible values of a continuous random variable that are generated by a binomial experiment.
• E) None of these.

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Definitions:

Investment Opportunities

Potential placements of capital in projects or assets that are expected to yield returns or financial growth over time.

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to present value future cash flows, or in other cases, the central bank's interest rate for banks.

Net Present Value

The contrast between the present-valued cash inflows and outflows over a determined period.

Working Capital

The gap between a business's current assets versus its current liabilities, reflecting its short-term solvency and efficiency in operations.