The Poisson Distribution Is Being Used to Approximate a Binomial

question 59

Multiple Choice

The Poisson distribution is being used to approximate a binomial distribution.If n=30 and p=0.03, what value of lambda would be used?

• A)0.09
• B)9.0
• C)0.90
• D)90
• E)30

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Definitions:

Net Debt

The amount obtained by subtracting a company's total liabilities from its liquid assets.

Amortization Expense

The periodic expense recognized in the financial statements as the cost of an intangible asset is systematically allocated over its useful life.

Statement Of Cash Flows

A financial report that summarizes the amount of cash and cash equivalents entering and leaving a company.

Direct Method

A cash flow statement presentation method that enumerates major categories of gross cash receipts and payments.