The Securities and Exchange Commission has determined that the number of companies listed in NYSE declaring bankruptcy is approximately a Poisson distribution with a mean of 2.6 per month. Find the probability that more than 1 bankruptcy occur next month.
A).1931
B).9257
C).7326
D).4816
E).2674

Question

Quizplus · Accepted Answer

The probability of more than 1 bankruptcy is 1 minus the probability of 0 or 1 bankruptcy. Using the Poisson formula, P(X=k) = (e^(-λ) * λ^k) / k!, where λ = 2.6. Calculate P(X=0) and P(X=1), then subtract their sum from 1 to find P(X>1).

The Securities and Exchange Commission Has Determined That the Number