Instruction 5-8
A major airline keeps a record of the number of mishandled bags per 1,000 customers.In 2011,the airline had 4.06 mishandled bags per 1,000 customers.Assume that the number of mishandled bags has a Poisson distribution.
-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 analyse his ability to identify 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 financial analyst is selecting 3 companies out of a group of 60, which is a small fraction of the population. Therefore, the appropriate probability distribution to use is the hypergeometric distribution. The binomial distribution assumes that the trials are independent and the Poisson distribution assumes a large number of trials.

Instruction 5-8 a Major Airline Keeps a Record of the Number of Number