Which of the Following Distributions Is Appropriate When the Probability

question 3

Multiple Choice

Which of the following distributions is appropriate when the probability of zero is very low, but the most likely value is just greater than zero?

• A) triangular distribution
• B) exponential distribution
• C) lognormal distribution
• D) beta distribution

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Definitions:

Shut Down

A temporary closure of a business or operation.

Marginal Cost

The expenditure required to produce one more unit of a product or service.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a particular price over a given period of time.

Marginal Revenue

The extra revenue gained by the sale of an additional unit of a product or service.