Determine the Required Probability by Using the Poisson Approximation to the Binomial

question 91

Multiple Choice

Determine the required probability by using the Poisson approximation to the binomial distribution. Round to threedecimal places.
-The rate of defects among CD players of a certain brand is 1.4%. Use the Poisson approximation to the binomial distribution to find the probability that among 230 such CD players received by a
Store, there is at most one defective.

• A)0.831
• B)0.129
• C)0.960
• D)0.169

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Definitions:

Articles of Incorporation

Official papers submitted to a government agency for the purpose of officially registering the formation of a corporation.

Mutual Agency

Act of a single partner is binding on all members of the partnership.

Raising Capital

The process of obtaining funds to finance business activities, which can be done through equity, debt, or other financial instruments.

Unlimited Life

A financial concept usually related to corporations, indicating that they can continue operating indefinitely unless dissolved by their owners or the law.