For Which Binomial Distribution Would a Poisson Approximation Be Unacceptable

question 31

Multiple Choice

For which binomial distribution would a Poisson approximation be unacceptable?

• A)n = 30, π = 0.02
• B)n = 50, π = 0.03
• C)n = 200, π = 0.10
• D)n = 500, π = 0.01

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Definitions:

Noncash Asset

Assets that cannot be easily converted into cash, such as buildings, equipment, and inventory.

Long-term Debt

Borrowings and financial obligations that are due to be repaid over a period longer than one year.

Financing Activities

Transactions that result in changes in the size and composition of the equity and borrowings of a company.

Cash Flow Statement

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.