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:

Lower Volta

A region in Ghana, characterized by the Volta River's lower part, significant for its hydroelectric projects and agriculture.

Aggregate Production

The total output of goods and services produced by an economy over a specific time period.

Net National Product

The total market value of all final goods and services produced by the residents of a country in a given time period, minus depreciation.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced by a country in real terms.