Compute Probabilities of a Poisson Random Variable

question 91

Multiple Choice

Compute Probabilities of a Poisson Random Variable
-The number of traffic accidents that occur on a particular stretch of road during a month follows a Poisson distribution with a mean of 8.9. Find the probability that less than three accidents will occur next month on this stretch of road.

• A) 0.006752
• B) 0.022777
• C) 0.993248
• D) 0.977223

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Definitions:

Opportunity Cost

The value of the best alternative that must be sacrificed in order to pursue a certain action.

Motorcycles

Two-wheeled vehicles powered by an engine, often used for both everyday transport and recreational activities.

SUVs

Sport Utility Vehicles; a category of motor vehicles that combine elements of road-going passenger cars with features from off-road vehicles, such as raised ground clearance and four-wheel drive.

Comparative Advantage

The ability of a country, individual, company, or region to produce a good or service at a lower opportunity cost than competitors.