A financial analyst is presented with information on the past records of 60 start-up companies
And told that in fact only 3 of them have managed to become highly successful.He selected 3
Companies from this group as the candidates for success.To analyze his ability to spot the
Companies that will eventually become highly successful, he will use what type of probability
Distribution?
A) binomial distribution.
B) Poisson distribution.
C) hypergeometric distribution.
D) none of the above.

Question

Quizplus · Accepted Answer

The hypergeometric distribution is used when sampling without replacement from a finite population, which is the case here as the analyst selects 3 companies from a group of 60.

A Financial Analyst Is Presented with Information on the Past