Online Test 2 

1.  Determine whether the following probability experiment represents a binomial experiment and explain the reason for your answer. An investor randomly purchases17 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 41​%.  The number of stocks that increase in value is recorded.

Does the probability experiment represent a biniomial​ experiment?

1. ​No, because there are more than two mutually exclusive outcomes for each trial.
2. Yes, because the experiment satisfies all the criteria for a binomial experiment.
3. ​No, because the probability of success differs from trial to trial.
4. No, because the trials of the experiment are not independent.