Question
upstudy study bank question image url

Determine if the following probability experiment represents a binomial experiment. If not, explain why. If the probability experiment is a binomial experiment, state the number of trials, \( n \), and probability of success, \( p \). An investor randomly purchases 8 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 \( 50 \% \). The number of stocks that increase in value is recorded. Select the correct choice below and, if necessary, fill in the answer boxes to complete your answer. A. Yes, because the experiment satisfies all the criteria for a binomial experiment, \( n=\square \) and \( p=\square \). (Type integers or decimals. Do not round.) B. No, because there are more than two mutually exclusive outcomes for each trial. C. No, because the trials of the experiment are not independent because the probability of success differs from trial to trial. D. No, because the experiment is not performed a fixed number of times.

Ask by Higgins Frank. in the United States
Mar 16,2025

Upstudy AI Solution

Tutor-Verified Answer

Answer

A. Yes, because the experiment satisfies all the criteria for a binomial experiment, \( n=8 \) and \( p=0.5 \).

Solution

Sign in to Unlock Answers for Free!

A Learning Platform Trusted by Millions of Real Students and Teachers.

star-icon Unlock

Answered by UpStudy AI and reviewed by a Professional Tutor

Beyond the Answer

A. Yes, because the experiment satisfies all the criteria for a binomial experiment, \( n=8 \) and \( p=0.5 \). Each stock can either increase in value (success) or not increase in value (failure), meeting the binomial requirements: a fixed number of trials (purchasing 8 stocks), two possible outcomes, constant probability of success, and independent trials. So you're all set for some fun stock analysis!

Related Questions

Latest Probability Questions

Try Premium now!
Try Premium and ask Thoth AI unlimited math questions now!
Maybe later Go Premium
Study can be a real struggle
Why not UpStudy it?
Select your plan below
Premium

You can enjoy

Start now
  • Step-by-step explanations
  • 24/7 expert live tutors
  • Unlimited number of questions
  • No interruptions
  • Full access to Answer and Solution
  • Full Access to PDF Chat, UpStudy Chat, Browsing Chat
Basic

Totally free but limited

  • Limited Solution
Welcome to UpStudy!
Please sign in to continue the Thoth AI Chat journey
Continue with Email
Or continue with
By clicking “Sign in”, you agree to our Terms of Use & Privacy Policy