The Poisson Distribution Is Being Used to Approximate a Binomial

question 59

Multiple Choice

The Poisson distribution is being used to approximate a binomial distribution.If n=30 and p=0.03, what value of lambda would be used?

• A)0.09
• B)9.0
• C)0.90
• D)90
• E)30

---

Definitions:

Annual Interest Rate

The percentage of principal charged or earned as interest for a period of one year.

Future Value

The value of an investment at a specific date in the future, accounting for factors like interest rates and compounding.

Annual Inflation Rate

The percentage increase in the price of goods and services over a one-year period, reflecting the purchasing power of a currency.

Automobiles

Motor vehicles with four wheels designed primarily for passenger transportation on roads.