For Which Binomial Distribution Would a Poisson Approximation Not Be

question 71

Multiple Choice

For which binomial distribution would a Poisson approximation not be acceptable?

• A)n = 35, π = 0.07
• B)n = 95, π = 0.01
• C)n = 80, π = 0.02
• D)n = 50, π = 0.03

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Definitions:

Excess Capacity

A situation where a firm or an economy can produce more goods or provide more services than currently being produced, due to unused resources.

Average-Total-Cost Curve

A graphical representation showing the average total cost per unit of output at different levels of production.

Monopolistically Competitive

Pertaining to a market structure where many firms sell products that are similar but not identical, allowing for some degree of market power due to product differentiation.

Indifferent

A state of having no particular interest or sympathy; unconcerned or having no preference.