The Normal Approximation of the Binomial Distribution Is Appropriate When

question 73

Multiple Choice

The normal approximation of the binomial distribution is appropriate when

• A) np ≥ 5.
• B) n(1 − p) ≥ 5.
• C) np ≤ 5.
• D) n(1 − p) ≤ 5 and np ≤ 5.
• E) np ≥ 5 and n(1 − p) ≥ 5.

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Definitions:

Working Capital

The variance between a firm's current holdings and debts, reflecting its short-term economic condition and efficiency in procedures.

Balance Sheet

A financial statement that shows a company's assets, liabilities, and equity at a specific point in time.

Sales On Account

Transactions where revenue is recorded when sales are made, but payment is received at a later date.

Cost Of Goods Sold

The total cost of goods that have been sold during a specific period, including the cost of materials, labor, and overhead.