What Are the Mean and Standard Deviation for the Normal

question 70

Multiple Choice

What are the mean and standard deviation for the normal approximation to the binomial distribution with n = 100 and p = .20?​

• A)​µ = 50 and σ = 5
• B)​µ = 50 and σ = 4
• C)​µ = 20 and σ = 16
• D)​µ = 20 and σ = 4

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Definitions:

Random Walk

The path of a variable whose changes are impossible to predict.

Marginal Utility

The additional satisfaction or usefulness gained from consuming one more unit of a good or service.

Risk-averse

Describes individuals or entities that prefer to avoid risk and would rather choose a certain outcome over a gamble with a potentially higher, but uncertain, return.

Diminishing Marginal Utility

An economic principle that asserts the added satisfaction a consumer gains from consuming one more unit of a good or service decreases with each additional unit consumed.