If the Rate of Defaults Per Year in a Set $\lambda = 5$

question 23

Multiple Choice

If the rate of defaults per year in a set of companies is given by $\lambda = 5$ , what is the probability of four or more defaults in half a year?

• A) 0.06
• B) 0.12
• C) 0.18
• D) 0.24

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Definitions:

Improvement Indices

Quantitative measures or indicators used to assess the level of improvement in processes, products, or performance over time.

Optimal Solution

The best possible outcome or answer found through a process of optimization, considering all constraints and objectives.

Demand Constraints

Limitations or restrictions on the amount of goods or services that can be sold or provided, often due to market or resource capabilities.

Intuitive Method

A decision-making process based on natural instincts, feelings, or judgments rather than on formal analysis or logical reasoning.