It was believed that the probability of a small business that declared bankruptcy per month was the same in any month.Also,the number of small businesses that declared bankruptcy was the same every month.Which of the following distributions would you use to determine the probability that more than 3 bankruptcies will occur next month?
A)Hypergeometric distribution.
B)Poisson distribution.
C)Uniform distribution.
D)Binomial distribution.

Question

Quizplus · Accepted Answer

Since the probability of a small business declaring bankruptcy is the same every month and the number of bankruptcies is the same every month, we can use the Poisson distribution to determine the probability of a certain number of bankruptcies occurring in a given month. Therefore, the best choice is the Poisson distribution.

It Was Believed That the Probability of a Small Business