Question: Determine whether the following probability experiment represents a binomial experiment and explain the reason for your answer. An investor randomly purchases 17 stocks listed on

Determine whether the following probability experiment represents a binomial experiment and explain the reason for your answer.

An investor randomly purchases 17 stocks listed on a stock exchange.Historically, the probability that a stock listed on this exchange will increase in value over the course of a year is 46%. The number of stocks that increase in value is recorded.

Does the probability experiment represent a biniomialexperiment?

No, because the probability of success differs from trial to trial.

Yes, because the experiment satisfies all the criteria for a binomial experiment.

No, because the trials of the experiment are not independent.

No, because there are more than two mutually exclusive outcomes for each trial.

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