Determine if the random variable from the experiment follows a Binomial Distribution. An investor randomly purchases 10 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. 1. There there are two mutually exclusive outcomes (success/failure). True or False? 2. Since a sample size of 10 is less than 5% of all stocks on the exchange, the trials are independent. True or False? 3. There is a fixed number of trials. True or False? 4. The probability of success is the same for each trial of the experiment. True or False? 5. The random variable follows a Binomial Distribution. True or False?
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Determine if the random variable from the experiment follows a Binomial Distribution.
An investor randomly purchases 10 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.
1. There there are two mutually exclusive outcomes (success/failure). True or False?
2. Since a sample size of 10 is less than 5% of all stocks on the exchange, the trials are independent. True or False?
3. There is a fixed number of trials. True or False?
4. The probability of success is the same for each trial of the experiment. True or False?
5. The random variable follows a Binomial Distribution. True or False?
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