Which Is True for a Binomial Distribution

question 49

Multiple Choice

Which is true for a binomial distribution?

• A) There are three or more possible outcomes.
• B) Probability of success remains the same from trial to trial.
• C) Value of p is equal to 1.50.
• D) It approximates the Poisson distribution.

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Definitions:

Ownership Percentage

The fraction of a company's shares owned by an individual or entity, representing a portion of control over the company.

General Partner

An owner of a partnership who has unlimited liability and is active in managing the firm, as opposed to a limited partner with limited liability.

Secondary Market

The market where investors buy and sell securities they already own, as opposed to the primary market where securities are first issued.

Foreign Exchange Market

A global marketplace for trading national currencies against one another.