A Binomial Distribution Has 100 Trials (N = 100)with a Probability

question 12

Multiple Choice

A binomial distribution has 100 trials (n = 100) with a probability of success of 0.25 (π = 0.25) . To apply the normal distribution to approximate the binomial,what are the mean and standard deviation?

• A)µ= 100 and σ = 0.25
• B)µ = 25 and σ = 100
• C)µ = 25 and σ = 4.33
• D)µ= 100 and σ = 2500

---

Definitions:

Greenbacks

A term historically used to refer to paper currency issued by the United States during the Civil War, recognized by their green coloring.

Gold Standard

A monetary system in which the value of a country's currency is directly linked to gold, ensuring stability and trust in the currency.

Time Deposits

A financial product provided by banks that offers a higher interest rate in exchange for keeping a specified amount of money untouched for a predetermined period.

Reserve Requirement

The minimum percentage of customer deposits and notes that a bank must hold as reserves rather than lending out, as mandated by the central bank.