Determine wehater the following probability experiment repsents a binomial exper

Question

Determine wehater the following probability experiment repsents 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 thta increase in value is recorded.

A) No because the trails of the experiment are no independent

B) Yes because the experiment staisfies all criteria for a binomial experiment

C) No because the probabily of success differs from trail to trial

D) No because there are more than mutually exclusive outcomes for each trail

Explanation / Answer

B) Yes because the experiment staisfies all criteria for a binomial experiment

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