Compute Probabilities of a Poisson Random Variable

question 92

Multiple Choice

Compute Probabilities of a Poisson Random Variable
-The number of road construction projects that take place at any one time in a certain city follows a Poisson distribution with a mean of 2. Find the probability that more than four road construction projects are currently taking place in the city.

• A) 0.052653
• B) 0.142877
• C) 0.947347
• D) 0.857123

---

Definitions:

Debt Capital

Funds borrowed by an entity that must be repaid over time, typically with interest.

Tight Economies

Economies characterized by limited credit availability, slow economic growth, or high unemployment rates.

Lending Arrangements

Financial agreements where a lender provides funds to a borrower with the expectation that the funds will be repaid, often with interest.

Accounts Receivable Financing

An arrangement where a business sells its outstanding invoices to a third party at a discount in exchange for immediate cash.