Which theoretical distribution would be most appropriate to use for a large number of exposure units (over 50) and the probability of loss is very small?
A) normal distribution
B) binomial distribution
C) Poisson distribution
D) fourier distribution.

Question

Quizplus · Accepted Answer

The Poisson distribution is most appropriate for modeling the number of times an event occurs in a fixed interval of time or space when the events occur with a known constant mean rate and independently of the time since the last event. It is particularly useful for rare events over a large number of trials, which matches the scenario of a very small probability of loss over a large number of exposure units.

Which Theoretical Distribution Would Be Most Appropriate to Use for a Large