A certain type of new business succeeds 60% of the time.Suppose that 3 such businesses open (where they do not compete with each other,so it is reasonable to believe that their relative successes would be independent).Which of the following distributions would you use to determine the probability that all of them will fail?
A)Binomial distribution.
B)Poisson distribution.
C)Normal distribution.
D)Hypergeometric distribution.

Question

Quizplus · Accepted Answer

Since each business can either succeed or fail, and the trials are independent with a fixed probability of success (0.4), we can use the binomial distribution. The probability of all three businesses failing is given by (0.4)^3 = 0.064.

A Certain Type of New Business Succeeds 60% of the Time.Suppose