It Was Believed That the Probability of a Small Business

question 28

Multiple Choice

It was believed that the probability of a small business that declared bankruptcy per month was the same in any month. Also the number of small businesses that declared bankruptcy was the same every month. Which of the following distributions would you use to figure out the probability that more than 3 bankruptcies will occur next month?

• A) exponential distribution
• B) hypergeometric distribution
• C) Poisson distribution
• D) uniform distribution

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Definitions:

Shares Outstanding

The total number of shares of stock that have been issued and are currently held by investors, including restricted shares owned by the company’s officers and insiders.

Stock Price

Stock price is the cost of purchasing a share of a company's stock, reflecting the value the market attributes to the company.

Independent Variable

A factor that is intentionally changed to see its impact on an outcome variable in a study.

Dependent Variable

The variable in an experiment or study whose changes are determined by the presence or variation of one or more independent variables.