The Hypergeometric Probability Distribution Is Used Rather Than the Binomial

question 75

Multiple Choice

The hypergeometric probability distribution is used rather than the binomial or the Poisson when:

• A) the sampling is performed with replacement.
• B) the sampling is performed without replacement from an infinite population.
• C) the sampling is performed without replacement from a finite population.
• D) the sampling is performed with replacement from a finite population.

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Definitions:

Long-Term

Refers to holding an asset for more than a year before disposal, affecting the calculation of capital gains and losses for tax purposes.

Short-Term Gain

A profit from the sale of an asset held for one year or less.

Investment Portfolio

An assortment of financial assets including stocks, bonds, commodities, cash, and equivalents, such as mutual funds and exchange-traded funds (ETFs).

Preferential Tax Treatment

Special tax rules that result in a lower tax rate or beneficial tax conditions for certain types of income or taxpayers.