The Expected Value for a Binomial Probability Distribution Is

question 84

Multiple Choice

The expected value for a binomial probability distribution is

• A)E(x) = pn(1 - n)
• B)E(x) = p(1 - p)
• C)E(x) = np
• D)E(x) = np(1 - p)

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Definitions:

Taxable Income

The amount of income that is used to calculate how much tax an individual or a company owes to the government.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is kept by the company to be reinvested in its core business or to pay debt.

Capital Budgeting

The process of evaluating and selecting long-term investments that are consistent with the firm's goal of maximizing owner wealth.

Cost of Capital

The rate of return that a company must achieve in order to justify the cost of an investment or project.