The Number of Traffic Accidents That Occur on a Particular

question 65

Multiple Choice

The number of traffic accidents that occur on a particular stretch of road during a month follows a Poisson distribution with a mean of 8.5. Find the probability that exactly four accidents will occur on this stretch of road each of the next two months.

• A) 0.088510
• B) 0.001958
• C) 0.044255
• D) 0.000144

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Definitions:

Aggregate Demand

The complete market appetite for all goods and services in an economy, assessed at a defined price level during a particular duration.

Medium of Exchange

An intermediary instrument used to facilitate the sale, purchase, or trade of goods between parties.

Federal Funds Rate

The interest rate at which depository institutions trade federal funds (balances held at Federal Reserve Banks) with each other overnight.

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulation of financial institutions, and stability of the financial system.