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:

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Permits granted by an authority to an individual or organization to engage in a particular activity or occupation.

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Legal rights that result from intellectual activity in the industrial, scientific, literary, and artistic fields.

Real Property

Land and anything permanently attached to it, like buildings, along with the rights associated with the ownership of land.

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Physical assets that can be seen, touched, and measured, such as land, buildings, and equipment.