Which Is True for a Binomial Distribution

question 88

Multiple Choice

Which is true for a binomial distribution?

• A) There are ten or more possible outcomes.
• B) The probability of success remains the same from trial to trial.
• C) The value of π is equal to 1.50.
• D) It approximates the Poisson distribution.

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Definitions:

U.S. Cigarette Industry

The industry comprising companies operating within the United States that manufacture, distribute, and sell cigarettes and related products.

Oligopoly

A market structure characterized by a small number of firms that dominate the market, leading to limited competition and potentially higher prices for consumers.

Perfectly Competitive

describes a market structure where there are many buyers and sellers, products are homogeneous, and there are no barriers to entry or exit, leading to optimal distribution and resource allocation.

Contestable Markets

Markets in which entry and exit are easy enough to hold prices to a competitive level even if no entry actually occurs.