A Local Bank Has Determined That the Number of Companies

question 65

Multiple Choice

A local bank has determined that the number of companies listed in the area declaring bankruptcy follows an approximately a Poisson distribution with a mean of 2.6 per year.
-Find the probability that more than 1 bankruptcy occurs next year.

• A)1931
• B)9257
• C)7326
• D)4816
• E)2674

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Definitions:

Maximum Profit

Maximum profit is the highest possible financial gain that a business can achieve from its operations, after subtracting all costs and expenses.

Combinations

Various ways in which objects, numbers, or selections can be combined or arranged.

Corners

Points where two or more edges or surfaces meet, often used metaphorically to denote an aspect or part of something less explored or known.

Objective Function

A mathematical function used in optimization to define the goal of the decision-making process, such as maximizing profit or minimizing cost.