Suppose the Number of Babies Born Each Hour at a Hospital

question 94

Multiple Choice

Suppose the number of babies born each hour at a hospital follows a Poisson distribution with a mean of 6. 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 seven 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 0.0000184.
• B) The belief is not supported as the probability of observing this many births is 0.256.
• C) The belief is supported as the probability of observing this many births would be 0.256.
• D) The belief is not supported as the probability of observing this many births is 0.0000184.

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Real Exchange Rate

Measures the value of goods in one country compared to those in another, adjusting for price level differences.

Net Exports

The value calculated by subtracting a country's total value of imports from its total value of exports, which reflects a country's external trade balance.

Foreign-Currency Exchange

The process of exchanging one currency for another, determining how much one currency is worth in terms of another.

Loanable Funds

The loanable funds market is a conceptual framework for understanding the market where borrowers and lenders interact, determining the supply and demand for loans and consequently the interest rate.