A certain type of new business succeeds 60% of the time.Suppose that three 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) Hypergeometric distribution.
C) Poisson distribution.
D) None of the above.

Question

Quizplus · Accepted Answer

We can use the Binomial distribution to model the situation where three businesses either succeed or fail independently of each other with a fixed probability of success, p = 0.6. The probability of all three businesses failing can be calculated as P(X=0) = (0.4)^3 = 0.064, where X is the number of successes in three trials. Therefore, the answer is choice letter A.

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