What Is the Average Number of Hours That a Venture

question 18

Multiple Choice

What is the average number of hours that a venture capitalist will spend conducting due diligence on a promising venture?

• A) 25
• B) 60
• C) 120
• D) 400
• E) 600-800

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Definitions:

Exponentially Distributed

Pertaining to a statistical distribution characterized by a constant rate of decay or growth over time.

Random Variable

A variable whose outcomes are determined by the occurrences of a random event.

Exponential Random Variable

A type of random variable that describes the time between events in a Poisson process, representing occurrences that happen at a constant rate.

Exponentially Distributed

Describes the time between events in a Poisson point process, i.e., a process in which events occur continuously and independently at a constant average rate.