A Binomial Distribution with N Number of Trials,and Probability of Success

question 31

True/False

A binomial distribution with n number of trials,and probability of success p can be approximated well by a normal distribution with mean np and variance $\sigma ^ { 2 } = n p ( 1 - p ) \text { if } n p > 5 \text { and } n ( 1 - p ) > 5$

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Definitions:

Variable Production Expense

Costs that vary directly with the level of production, including raw materials and direct labor costs.

Variable Selling

Costs associated with selling a product that vary directly with the volume of sales.

Variable Administrative Expenses

Costs related to the administration of a business that vary with the level of activity or production.

Fixed Cost

Charges that are stable in spite of the levels of output or sales achieved, such as housing lease, salaries paid to employees, and insurance expenses.