The Ace Construction Company has entered into a contract to widen a street in Boston. The possible payoffs for this project have been determined by management. The probabilities for these payoffs could be determined using a binomial distribution.

Question

Quizplus · Accepted Answer

The binomial distribution is used for scenarios with two outcomes (success or failure) in repeated trials, which doesn't typically apply to the payoffs of a construction project. Payoffs would more likely follow a continuous distribution, considering the range of possible outcomes based on costs, delays, and other variables.

The Ace Construction Company Has Entered into a Contract to Widen