The Variance Will Reach a Maximum in a Binomial Distribution

question 56

Multiple Choice

The variance will reach a maximum in a binomial distribution when:

• A)π = 1 and 1 - π = 0.
• B)π = ¼ and 1 - π = ¾.
• C)π = ½ and 1 - π = ½.
• D)π = 0 and 1 - π = 1.

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Definitions:

Marginal Product

The additional output that is produced by using one more unit of a particular input, holding the levels of all other inputs constant.

Production Function

An economic model that describes the relationship between input resources and the output of goods or services for a business or economy.

Production Function

A mathematical representation that describes how inputs like labor and capital are turned into outputs, such as goods or services.

Inputs

The resources used in the production process to produce goods or services, including labor, materials, and capital.