What is meant by the intensity parameter in the Poisson process?
What will be an ideal response?
The intensity parameter (given by? in the Poisson process) refers to the probability of default over a small time period. More specifically, default intensity at time t is the conditional probability of default per unit time given that the corporation has not previously defaulted.
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Departmental reports are used for internal management only; therefore the accounting rules for external reporting do not apply
a. True b. False Indicate whether the statement is true or false
Recording estimated product warranty expense in the year of the sale best follows which of the following accounting principles?
a. Matching b. Consistency c. Historical cost d. Full disclosure
If upper management uses a short time frame to calculate ROI and RI, division managers have an incentive to take actions that will lead to an immediate increase in these measures
Indicate whether the statement is true or false
Oh! Wow!Markets, Inc, rejects a shipment of turkey that does not conform to its contract with Poultry Processing Corporation, but is unable to obtain instructions from the seller. Oh! Wow! Marketscan
a. destroy the goods. b. cure the goods to make them conform to the contract. c. retain the goods without paying for them. d. reship or store the goods for the seller.