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

question 39

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 figure out the probability that all of them will fail?

• A) binomial distribution
• B) uniform distribution
• C) Poisson distribution
• D) normal distribution

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Definitions:

Point A

A specific location or position in any defined space or context, often used in diagrams to represent particular points in economic models or graphs.

Point B

Often used in graphs or models to denote a specific location, point, or situation being analyzed or referenced.

Opportunity Cost

The cost of missing out on the next best alternative when making a decision.

Point A

Typically used as a reference point in diagrams or illustrations in economics or geometry.