According to the National Health Interview Survey, 4

question 32

Multiple Choice

According to the National Health Interview Survey, 4.7% of U.S. adults 50 and older have had a total knee replacement. A random sample of 20 adults 50 and older has been selected. Use the Poisson distribution to approximate the binomial distribution to determine the probability that three or four adults from this sample have had a total knee replacement.

• A)0.0668
• B)0.4219
• C)0.1145
• D)0.2553

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Definitions:

Marginal Cost

The cost incurred by producing one additional unit of a product or service.

Claim Dilution

The reduction in the likelihood of recovery or the value of each creditor’s claim as a result of an increase in the number of claimants or claims against the same debtor or asset.

Secured Loan

A loan that is backed by collateral, providing the lender with assurance that the loan will be repaid.

Unsecured Loan

A loan given without requiring collateral from the borrower.