You are offered an investment opportunity.Its outcomes and probabilities are presented in the following table. $$\begin{array} { | c | c | }
\hline \boldsymbol { x } & P ( \boldsymbol { x } ) \
\hline \hline - \$ 1,000 & 40 \
\hline \$ 0 & .20 \
\hline + \$ 1,000 & .40 \
\hline
\end{array}$$ Which of the following statements is true?
A)This distribution is skewed to the right.
B)This is a binomial distribution.
C)This distribution is symmetric.
D)This distribution is skewed to the left.
E)This is a Poisson distribution

Question

You are offered an investment opportunity.Its outcomes and probabilities are presented in the following table. $$\begin{array} { | c | c | } 
\hline \boldsymbol { x } & P ( \boldsymbol { x } ) \
\hline \hline - \$ 1,000 & 40 \
\hline \$ 0 & .20 \
\hline + \$ 1,000 & .40 \
\hline
\end{array}$$ Which of the following statements is true?
A)This distribution is skewed to the right.
B)This is a binomial distribution.
C)This distribution is symmetric.
D)This distribution is skewed to the left.
E)This is a Poisson distribution

Quizplus · Accepted Answer

The distribution is symmetric because the probabilities of gaining $1,000 and losing $1,000 are equal (both 40%), with a 20% chance of breaking even, creating a balanced outcome on both sides of the $0 mark.

You Are Offered an Investment Opportunity Which of the Following Statements Is True? A)This Distribution Is

You Are Offered an Investment Opportunity Which of the Following Statements Is True?
A)This Distribution Is