When Using a Poisson Distribution to Approximate a Binomial Distribution

question 147

True/False

When using a Poisson distribution to approximate a binomial distribution, the mean of the Poisson distribution is np where n is the sample size and p is the probability of an event of interest.

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Definitions:

Agency Relationship

A legal arrangement in which one party, the agent, is authorized to act for another, the principal, in business transactions.

Principal

In finance, the original sum of money borrowed or invested, excluding any interest or profit. In legal contracts, the party who authorizes an agent to act on their behalf.

Course And Scope

Refers to activities that are conducted within the bounds of an employee's job duties and during employment.

Employer Authorization

A formal approval or permission granted by an employer, often related to employment activities or access to company resources.