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dalvyx [7]
3 years ago
15

A financial analyst is presented with information on the past records of 60 start-up companies and told that in fact only 3 of t

hem 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
Business
1 answer:
aleksandr82 [10.1K]3 years ago
8 0

Answer:

c) hypergeometric distribution.

Explanation:

Hypergeometric distribution -

It is the distribution curve of the " k " success probability in " n " draws , without any replacement with the size of " N " , having " K "  , objects .

This distribution is used to calculate the statistical significance for " k " success out of " n " draws .

This required to detect the which sub - population are under or over represented in a sample .

Hence , the probability distribution given in the question is of , hypergeometric distribution .

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In Accounting, explicit costs are those incurred as a result of the operation of the companies. <em>Raw materials, direct labor, overhead </em>or <em>rent </em>are examples of explicit costs. Implicit costs represent the opportunity costs of the firm over forgone decisions or decisions not taken at all like avoiding hiring more employees.

The economic profit of a firm includes both explicit and implicit costs. <em>The accounting profit of a company includes only the explicit costs, thus, the opportunity costs of the equity capital of investors are not taken into consideration.</em>

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