Determine wehater the following probability experiment repse

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

Solution

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