What Type of Probability Distribution Will Most Likely Be Used

question 81

Multiple Choice

What type of probability distribution will most likely be used to analyze the number of cars with defective radios in the following problem? From an inventory of 48 new cars being shipped to local dealerships,corporate reports indicate that 12 have defective radios installed.The sales manager of one dealership wants to predict the probability out of the 8 new cars it just received that,when each is tested,no more than 2 of the cars have defective radios.

• A)binomial distribution.
• B)Poisson distribution.
• C)hypergeometric distribution.
• D)none of the above.

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Definitions:

Payments

Transactions made by individuals or entities to fulfill obligations or to purchase goods and services.

Present Value

The immediate valuation of an upcoming sum of money or series of cash transactions, based on a given rate of return.

Future Value

The value of an investment at a specified date in the future, taking into account interest or capital gains.

Scheduled Payment

A pre-determined amount of money that is paid at regular intervals according to a repayment plan, such as a loan or mortgage.