Determine whether the following probability experiment represents a binomial experiment and explain the reason for your answer. An investor randomly purchases 18 stocks listed on a stock exchange. Historically, the probability that a stock listed on this exchange will increase in value over the course of a year is 46%. The number of stocks that increase in value is recorded. Does the probability experiment represent a biniomial experiment? O A. No, because there are more than two mutually exclusive outcomes for each trial. O B. Yes, because the experiment satisfies all the criteria for a binomial experiment. O C. No, because the trials of the experiment are not independent. O D. No, because the probability of success differs from trial to trial.
Determine whether the following probability experiment represents a binomial experiment and explain the reason for your answer. An investor randomly purchases 18 stocks listed on a stock exchange. Historically, the probability that a stock listed on this exchange will increase in value over the course of a year is 46%. The number of stocks that increase in value is recorded. Does the probability experiment represent a biniomial experiment? O A. No, because there are more than two mutually exclusive outcomes for each trial. O B. Yes, because the experiment satisfies all the criteria for a binomial experiment. O C. No, because the trials of the experiment are not independent. O D. No, because the probability of success differs from trial to trial.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:Determine whether the following probability experiment represents a binomial experiment and explain the reason for your answer.
An investor randomly purchases 18 stocks listed on a stock exchange. Historically, the probability that a stock listed on this exchange will increase in value over the
course of a year is 46%. The number of stocks that increase in value is recorded.
Does the probability experiment represent a biniomial experiment?
O A. No, because there are more than two mutually exclusive outcomes for each trial.
B. Yes, because the experiment satisfies all the criteria for a binomial experiment.
C. No, because the trials of the experiment are not independent.
D. No, because the probability of success differs from trial to trial.
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