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:

Average Total Cost

The total cost of production divided by the number of units produced, representing the average cost per unit of output.

Average Total Cost

The overall expense of manufacturing divided by the quantity of products made, indicating the expense for each unit of production.

Profit-maximizing

The process of adjusting production and pricing strategies to achieve the highest possible profit from the sale of goods and services.

Short Run

A time period in economics during which at least one input is fixed and cannot be changed.