The multiplicative binomial cannot take on negative values and can be used for factors like demand,price,and exchange rates that cannot become negative.

Question

Quizplus · Accepted Answer

The statement is true. The multiplicative binomial is a function that involves multiplying two binomials together. The resulting product cannot become negative because both binomials are non-negative. This makes the multiplicative binomial useful for modeling factors like demand, price, and exchange rates that are constrained to be non-negative.

The Multiplicative Binomial Cannot Take on Negative Values and Can