Suppose the Number of Babies Born Each Hour at a Hospital

question 20

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

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Definitions:

Ordinary Annuity

An annuity in which the payments are made at the end of each payment interval.

Monthly Payments

Regular payments made every month, often in the context of loans or leases, to repay borrowed money plus interest.

Compounded Annually

The process of calculating interest on both the initial principal and the accumulated interest from previous periods on an annual basis.

Yearly Contributions

These are amounts of money contributed to any type of savings or investment plan on an annual basis.