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Quantitative Methods

4. It is least likely for a binomial random variable that:

A. the standard deviation of the variable is np(1 – p).

B. the probability of success, p, is constant for all trials.

C. the experiment has only two outcomes.

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5. Choosing not to reject the null hypothesis that “the investment-grade bonds we are considering purchasing yield more than 0%” is likely:

A. statistical decision.

B. economic decision.

C. investment decision.

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6. Which of the following is least likely to be true for a normal probability distribution?

A. It has an excess kurtosis of 3.0.

B. The mean is equal to the median.

C. It is completely described by its mean and (or standard deviation).

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