Which of the Following Can Be Used to Approximate the Binomial

question 10

Multiple Choice

Which of the following can be used to approximate the binomial distribution when the number of trials n is large and the probability of success P is small such that nP ≤ 7?

• A)Poisson distribution
• B)hypergeometric distribution
• C)any discrete distribution
• D)any distribution with a mean equals 7

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Definitions:

Limited Life

The concept that an asset or an entity has a finite existence or operational period before it ceases to be useful or exist.

Corporation

A legal entity that is separate and distinct from its owners, providing them with limited liability, and is permitted to own assets, incur liabilities, and sell securities, among other rights.

Partnership

A legitimate business model involving collaboration between two or more people in managing and dividing earnings.

Potential Loss

The possible financial harm or loss a business could suffer due to unforeseen events or risks.