(I a Binomial Probability Distribution Approaches a Greater Degree of Symmetry

question 31

Multiple Choice

(i. A binomial probability distribution approaches a greater degree of symmetry as probability of success remains constant and the number of trials becomes larger or greater. (ii) In a binomial experiment, the probability of a failure equals the probability of success.
(iii) In a binomial experiment, probability of success or failure remains constant from one trial to another.

• A) (i), (ii), and (iii) are all correct statements.
• B) (i) is a correct statement but not (ii) or (iii).
• C) (i) and (iii) are correct statements but not (ii).
• D) (ii) and (iii) are correct statements but not (i).
• E) (i), (ii), and (iii) are all false statements.

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Definitions:

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price, offering insight into the income generated from an investment in the stock.

Common Dividends

Payments made by a corporation to its common shareholders from its after-tax profits.

Professional Judgement

Professional Judgement involves applying expertise, knowledge, and experience to make informed decisions and assessments in the context of accounting and auditing.

Accrual Accounting

An accounting method that records revenues and expenses when they are incurred, regardless of when cash transactions occur, providing a more accurate picture of a company's financial health.