A local bank has determined that the number of companies listed in the area declaring bankruptcy follows an approximately a Poisson distribution with a mean of 2.6 per year.
-Find the probability that no more than one bankruptcy occurs next year.
A)1931
B)9257
C)7326
D)4816
E)2674

Question

Quizplus · Accepted Answer

The probability of no more than one bankruptcy (0 or 1) can be calculated using the Poisson probability formula: P(X=k) = (e^(-λ) * λ^k) / k!. For k=0 and k=1, sum these probabilities: P(X=0) + P(X=1). With λ=2.6, this results in approximately 0.2674.

A Local Bank Has Determined That the Number of Companies