Suppose That Past History Shows That 60% of University Students

question 101

Multiple Choice

Suppose that past history shows that 60% of university students prefer Pepsi .A sample of 10,000 students is to be selected.Which of the following distributions would you use to figure out the probability that at least half of them will prefer Pepsi ?

• A) Binomial distribution.
• B) Poisson distribution.
• C) Normal distribution.
• D) None of the above.

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Definitions:

Exchange

A marketplace where securities, commodities, derivatives, and other financial instruments are traded.

Future

In finance, a future is a standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, often used as a financial instrument for hedging or speculation.

Swap Contract

A swap contract is an agreement between two parties to exchange financial instruments or cash flows at a future date based on specified terms.

Specified Cash Flows

Specified Cash Flows refers to particular amounts of money that are expected to be received or paid out at defined times during the life of a financial instrument or investment.