The Mean or Expected Value for a Binomial Probability Distribution

question 73

Multiple Choice

The mean or expected value for a binomial probability distribution is ________.

• A)μ = nπ(1 −π)
• B)μ = π(1 −π)
• C)μ = πn(1 −n)
• D)μ = nπ

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Definitions:

Price Floor

A government or regulatory imposed minimum price above which a particular good or service cannot be traded.

Shortage/Surplus

A market condition where the quantity of a good supplied is less/more than the quantity demanded at the market price.

Price Ceiling

A price ceiling is a government-imposed limit on how high a price can be charged for a product or service, intended to protect consumers from prices that are deemed too high.

Shortage/Surplus

A shortage occurs when demand exceeds supply, whereas a surplus happens when supply exceeds demand.