Which of the Following Distributions Can Be Used to Solve

question 89

Multiple Choice

Which of the following distributions can be used to solve the following problem? The average number of cars arriving at a drive-through fast-food restaurant is three in 10 minutes.What is the probability that exactly 4 cars will arrive in a five-minute interval?

• A)Binomial
• B)Poisson
• C)Both of these
• D)None of these

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Definitions:

Accrued Interest

Interest that has been earned but not yet received or recorded as of a particular date.

Bond Purchase

The acquisition of debt securities issued by corporations or governments, representing a loan made by the investor to the issuer.

Equity Securities

Financial instruments representing ownership interest in a company, such as stocks.

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically involving periodic interest payments and the return of principal at maturity.