Which of the Following Distributions Describes the Number of Trials

question 77

Multiple Choice

Which of the following distributions describes the number of trials until an event occurs?

• A) Binomial distribution
• B) Geometric distribution
• C) Negative binomial distribution
• D) Poisson distribution
• E) None of the answer choices is correct.

---

Definitions:

Intrinsic Value

The actual, fundamental value of an asset, investment, or company, based on underlying perception of its true value including all aspects of the business.

Call Option

A financial contract giving the holder the right, but not the obligation, to buy an asset at a specified price within a specific time period.

Market Value

The current price at which an asset or service can be bought or sold in the marketplace.

Equity

The value of an owner's interest in a property, equal to the property's value minus the amount of existing liens.