A Correction for Continuity Must Be Made When Approximating the Binomial

question 101

True/False

A correction for continuity must be made when approximating the binomial distribution problems using a normal distribution.

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Definitions:

Consumer Surplus

The gap between the price consumers are ready to pay for a good or service and the price they actually incur.

Marginal Revenue

The surplus revenue acquired from the sale of one more unit of a good or service.

Profit Maximizing Output

The level of production at which a firm achieves the highest possible profit, determined by the point where marginal cost equals marginal revenue.

Demand Curve

A graphic representation showing how the quantity demanded of a good or service varies with its price.