A Certain Type of New Business Succeeds 60% of the Time.Suppose

question 257

Multiple Choice

A certain type of new business succeeds 60% of the time.Suppose that 3 such businesses open (where they do not compete with each other,so it is reasonable to believe that their relative successes would be independent) .Which of the following distributions would you use to determine the probability that all of them will fail?

• A)Binomial distribution.
• B)Poisson distribution.
• C)Normal distribution.
• D)Hypergeometric distribution.

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Definitions:

Revenues

The total income generated from normal business operations and other activities over a period.

Assets

Resources owned by a business that are expected to provide future economic benefits.

Owner's Equity

Owner's equity represents the residual interest in the assets of an entity after deducting liabilities, essentially the net worth of a company.

Withdrawal

The act of taking money out of an account, or the removal of funds from a partnership by a partner for personal use.