You are offered an investment opportunity. Its outcomes and probabilities are presented in the following table: 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:  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 not symmetric, as the probabilities are not equal on both sides of the mean. It also cannot be a binomial or Poisson distribution, as the probabilities are not constant and the trials are not independent. The shape of the table suggests that the distribution is skewed to the left, with higher probabilities on the lower outcome values. Therefore, the correct answer is D.

You Are Offered an Investment Opportunity