An Externality Can Be a

question 410

Multiple Choice

An externality can be a

• A) cost or a benefit.
• B) benefit but not a cost.
• C) cost but not a benefit.
• D) marginal cost but not a total cost.

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Definitions:

Binomial Probability

The probability of obtaining a fixed number of successes in a set number of trials in an experiment with two possible outcomes.

Continuity Correction

A correction used in approximating a discrete distribution with a continuous one, especially in hypothesis testing with binomial distributions.

Normal Probability Distribution

A bell-shaped curve that represents the distribution of many types of naturally occurring data and is defined by its mean and standard deviation.

Discrete Probability Distributions

Probability distributions that characterize the outcomes of experiments with discrete outcomes, specifying the probability of each outcome.