What Kind of Distributions Are the Binomial and Poisson Probability

question 42

Multiple Choice

What kind of distributions are the binomial and Poisson probability distributions?

• A)Discrete
• B)Continuous
• C)Both discrete and continuous
• D)Neither discrete or continuous

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Definitions:

Business Risk

Business risk pertains to the potential for loss that a business faces from factors affecting its profitability or operational success, such as market competition and demand fluctuations.

Financial Risk

The possibility of losing money on an investment or business venture due to market conditions, interest rate changes, or other financial factors.

Interest Tax Shield

The reduction in income taxes that results from the deduction of interest payments on debt from taxable income.

Unlevered

Pertaining to a business or investment that does not involve borrowing, thereby not subject to the risks and rewards of leverage.