The Securities and Exchange Commission has determined that the number of companies listed on the NYSE declaring bankruptcy is approximately a Poisson distribution with a mean of 2.6 per month.Find the probability that exactly 4 bankruptcies occur next month.
A) .8774
B) .1414
C) .1557
D) .2176

Question

Quizplus · Accepted Answer

The probability of exactly 4 bankruptcies occurring next month is given by the Poisson distribution:P(X = 4) = (e^-2.6 * 2.6^4) / 4! = 0.1414

The Securities and Exchange Commission Has Determined That the Number