Which Probability Distribution Is Appropriate When the Events of Interest

question 7

Short Answer

Which probability distribution is appropriate when the events of interest occur randomly, independently of one another, and rarely? $\begin{array}{|l|l|}\hline A&\text {Binomial distribution. }\\\hline B&\text { Poisson distribution.}\\\hline C&\text {Any discrete distribution. }\\\hline D&\text { Any continuous distribution.}\\\hline \end{array}$

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Definitions:

Satisfy Debt

To fully pay off or settle a debt, meeting the terms agreed upon by the debtor and creditor.

Equipment

Equipment consists of the necessary tools, machinery, devices, or any tangible items required for the specific purpose of executing a task or activity.

Mortgage Insurance

An insurance policy designed to protect the lender from the risk of the borrower defaulting on a mortgage.

Mortgage Loan

A loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty.