Given That N Is the Number of Trials and P

question 115

Multiple Choice

Given that n is the number of trials and p is the probability of success in any one trial of a random experiment, the expected value of a binomial random variable equals:

• A) n
• B) p
• C) np
• D) n/p
• E) n/p(1 - p)

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Definitions:

Crossover Rate

The rate at which two projects have the same net present value, used in capital budgeting to compare projects.

Mutually Exclusive

Situations or events that cannot occur at the same time, implying that the occurrence of one event excludes the occurrence of the other.

NPV

Net Present Value, a method to assess the profitability of an investment by comparing the present value of cash inflows to the present value of cash outflows.

NPV

Net Present Value is a financial measure that determines the discrepancy between the present value of money coming in and going out over a certain timeframe.