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 to model the number of events occurring within a fixed interval of time or space when these events happen with a known constant mean rate and independently of the time since the last event. In this case, it is suitable for modeling the number of bankruptcies per month.

It Was Believed That the Probability of a Small Business