If X Is a Poisson Random Variable with a Mean

question 56

Multiple Choice

If x is a Poisson random variable with a mean of 10, what is the probability that x is greater than or equal to 2?

• A) .9972
• B) .0028
• C) .9995
• D) .0005

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Definitions:

Operating Income

A measure of a company's profit excluding one-off items and costs not directly related to its core operations, such as interest and taxes.

Net Cash Inflows

The total amount of cash received minus cash outflows over a specific period, indicative of financial health.

Salvage Value

The estimated resale value of an asset at the end of its useful life.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period, used in capital budgeting to assess the profitability of an investment.