Suppose the Probability of a Car Accident Taking Place Anywhere

question 321

Multiple Choice

Suppose the probability of a car accident taking place anywhere on a stretch of a 20 miles highway is the same. Which of the following distributions would you use to determine the
Probability that a car accident will occur somewhere between the 5-mile and 15-mile posts of the
Highway?

• A) Normal distribution.
• B) Poisson distribution.
• C) Uniform distribution.
• D) Exponential distribution.

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Definitions:

Goodwill

The excess value of a purchased company over its identifiable tangible and intangible assets, reflecting intangible factors such as brand reputation or customer relations.

Opening Balance Sheet

The initial financial statement of a company, showing assets, liabilities, and equity at the start of a new accounting period.

Pooling Method

A method used in accounting for business combinations where the assets and liabilities of the combining companies are simply pooled together and recorded at historical cost.

Recognition Differences

Discrepancies that occur when financial transactions are recognized at different times or amounts in financial statements.