Which of the Following Distributions Can Be Used to Solve

question 101

Multiple Choice

Which of the following distributions can be used to solve the following problem?
The average number of cars arriving at a drive-thru fast food restaurant is 3 in ten minutes,what is the probability that exactly 4 cars will arrive in a five minute interval?

• A)Binomial
• B)Poisson
• C)Hypergeometric
• D)Normal
• E)Uniform

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Definitions:

Income Statement Approach

A method for creating an adjusting entry for bad debts by estimating uncollectible accounts based on income statement figures.

Aging

The process of categorizing accounts receivable based on how long an invoice has been outstanding to determine credit risk.

Direct Write-Off Method

An accounting method used to recognize bad debts at the point when specific accounts are deemed uncollectible, directly impacting the income statement.

Allowance Method

An accounting technique used to manage accounts receivable and bad debt by estimating uncollectible accounts at the end of each period.