Which Probability Distribution Is Appropriate When the Events of Interest

question 42

Multiple Choice

Which probability distribution is appropriate when the events of interest occur randomly, independently of one another, and rarely?

• A)Binomial distribution.
• B)Poisson distribution.
• C)Any discrete distribution.
• D)Any continuous distribution.

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Definitions:

Currency Speculators

Individuals or entities that buy and sell currencies with the aim of profiting from changes in exchange rates.

Inflation

A general increase in prices and a decrease in the purchasing value of money.

South Korean Won

The official currency of South Korea, represented by the symbol ₩ and the ISO code KRW.

Flexible Exchange Rates

A currency system where the value of a country's currency is allowed to fluctuate according to the foreign exchange market forces of demand and supply.