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

The Poisson distribution is used for modeling the number of times an event occurs in a fixed interval of time or space, given that these events happen with a known constant mean rate and independently of the time since the last event. This fits the scenario of predicting the number of bankruptcies in a month.

It Was Believed That the Probability of a Small Business