The Department of Commerce in a State Has Determined That

question 198

Short Answer

The Department of Commerce in a state has determined that the number of small businesses that declare bankruptcy per month is approximately a Poisson distribution with a mean of 6.4.Find the probability that more than 3 bankruptcies occur next month.

---

Definitions:

Laspeyres Price Index

A measure of price changes that uses the quantities of goods and services purchased in a base period to calculate the index.

Paasche Price Index

A price index that measures the price changes between the current and a base period, weighted by the current period's spending patterns.

Goods Double

A situation where the quantity of goods available or produced doubles without a change in quality.

Laspeyres Price Index

A price index used to measure the change in the cost of purchasing a fixed basket of goods and services of the type consumed during a base period.