What is the present value of an asset that yields $1,500 in five years and $3,000 in 10 years if the discount rate is 8%
1 answer:
You might be interested in
Answer:
(B) No. A binomial probability model applies to only two outcomes per trial.
Step-by-step explanation:
The binomial probability is the probability of having sucesses on
repeated trials of an experiment that can only have two outcomes. This is why it is called the binomial probability.
Since in our problem there are three possible outcomes, the binomial probability cannot be used.
The correct answer is (B)
(B) No. A binomial probability model applies to only two outcomes per trial.