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One of the Disadvantages of Commercial Paper Is That If

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One of the disadvantages of commercial paper is that if the company's credit quality declines,the issuance of additional paper may be impossible.


Definitions:

Poisson Approximation

A statistical technique used to estimate the probability of a given number of events happening in a fixed interval of time or space when these events occur with a known constant mean rate and independently of the time since the last event.

Probability

An indicator representing the probability or odds of a specific event happening, with its value ranging from 0 to 1.

Normal Model

A type of statistical distribution that is symmetric and describes how values are dispersed or spread around the mean.

Standard Deviations

Standard deviations measure the amount of variation or dispersion of a set of values from their mean, indicating how spread out the data points are.

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