You are bidding on four items available on eBay. You think that for each bid, you have

Question:

You are bidding on four items available on eBay. You think that for each bid, you have a 25% chance of winning it, and the outcomes of the four bids are independent events. Let X denote the number of winning bids out of the four items you bid on.
a. Explain why the distribution of X can be modeled by the binomial distribution.
b. Find the probability that you win exactly 2 bids.
c. Find the probability that you win 2 bids or fewer.
d. Find the probability that you win more than 2 bids.

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...