How Does a Multinomial Distribution Differ from a Binomial Distribution

question 121

Multiple Choice

How does a multinomial distribution differ from a binomial distribution?

• A) A binomial has only two possible categories and a multinomial can have more.
• B) A binomial has a fixed number of n trials.A multinomial has a fixed number of nk trials,where k is the number of categories.
• C) The probabilities in a binomial distribution are always p and 1 - p.The trials in a multinomial distribution are always p/k and (1 - p/k).
• D) All of these choices are true.

Prepare and analyze T-accounts related to manufacturing costs.

Comprehend the overall impact of cost accounting practices on the financial health of a manufacturing entity.

Understand how to calculate direct materials cost.

Calculate adjusted cost of goods sold.

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Definitions:

Imperfectly Competitive

A market structure characterized by few sellers, differentiated products, and barriers to entry, which does not meet the criteria of perfect competition.

Monopoly

A market structure characterized by a single supplier that has exclusive control over a good or service, potentially leading to higher prices and restricted output.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing and able to purchase at various prices.

Profit-Maximizing

A strategy where a firm adjusts production and sale levels to generate the highest profit possible.