A Financial Analyst Is Presented with Information on the Past

question 148

Multiple Choice

A financial analyst is presented with information on the past records of 60 start-up companies and told that in fact only 3 of them have managed to become highly successful. He selected 3 companies from this group as the candidates for success. To analyze his ability to spot the companies that will eventually become highly successful, he will use what type of probability distribution?

• A) Binomial distribution
• B) Poisson distribution
• C) Hypergeometric distribution
• D) None of the above.

---

Definitions:

Economic Independence

The state of having sufficient personal wealth to live, without needing to work actively for basic necessities, allowing individuals or nations to have control over their financial future.

Visible Minorities

Refers to persons, other than Indigenous peoples, who are non-Caucasian in race or non-white in color and are recognized in certain jurisdictions for policy and diversity planning.

Self-Starters

Individuals who are motivated and begin or proceed with tasks without requiring external encouragement or pressure.

Course Of Action

A plan or method adopted to address a problem or achieve a goal, involving a sequence of steps or actions.