(I If $\pi$ = 1/3 and N = 900, the Mean of This

question 55

Multiple Choice

(i. If $\pi$ = 1/3 and n = 900, the mean of this binomial distribution is 300. (ii) If n = 900 and $\pi$ = 1/3, the variance of this binomial distribution is 200.
(iii) If $\pi$ = 1/5 and n = 100, the standard deviation of this binomial distribution is four.

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

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Definitions:

Optimal Pigouvian Tax

A type of tax designed to correct the negative externalities of a market activity, set at a level that equates the marginal social cost of the externality with the marginal private cost.

Socially Optimal

A condition where resources are allocated in a way that benefits society as a whole, maximizing overall welfare.

Pollution

The introduction of contaminants into the natural environment that cause adverse change, affecting air, water, and land.

Beneficiaries

Individuals or groups that receive benefits or advantages from actions, policies, or trusts, often in the context of insurance, inheritance, or social programs.