Suppose the Number of Babies Born Each Hour at a Hospital

question 214

Multiple Choice

Suppose the number of babies born each hour at a hospital follows a Poisson distribution with a mean of 3. Some people believe that the presence of a full moon increases the number of births that take place. Suppose during the presence of a full moon, the hospital experienced eight consecutive
Hours with more than four births each hour. Based on this fact, comment on the belief that the full moon increases the number of births.

• A) The belief is supported as the probability of observing this many births would be 0.00000137
• B) The belief is not supported as the probability of observing this many births is 0.00000137.
• C) The belief is supported as the probability of observing this many births would be 0.185.
• D) The belief is not supported as the probability of observing this many births is 0.185.

---

Definitions:

Useful Life

The estimated duration a fixed asset is expected to be economically usable, with normal maintenance, for the purpose it was acquired or constructed.

Economic Value

The measurement of the benefit provided by a good or service to an economic agent.

Value-based Pricing

A pricing strategy where the price is set based on the perceived or estimated value of a product or service to the customer rather than on the cost of production.

Robot

An automated machine capable of carrying out a complex series of actions automatically, often programmable by a computer.