(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:

Nonconvex Preferences

Preferences where an individual values mixtures of goods or services less than pure bundles, violating the convexity assumption in utility theory.

Perfect Substitutes

Goods or services that can be used in place of each other with no loss of utility to the consumer.

Monotonic Transformation

A mathematical operation applied to a function that preserves the order of the data.

Utility Function

An equation that calculates the total utility a consumer gains from consuming a certain quantity of goods and services.