Compute Probabilities of a Poisson Random Variable

question 11

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 8.2. Find the probability of observing exactly three accidents on this stretch of road next month.

• A) 0.025239
• B) 4.575166
• C) 0.374135
• D) 67.820284

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Definitions:

Total Product Cost

The sum of all costs directly or indirectly associated with producing a product, including materials, labor, and overhead.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific products or services based on the activities and resources that go into their production.

Direct Labor Cost

Refers to the total amount paid to workers directly involved in the production of goods or services, including wages and other related expenses.

Predetermined Overhead Rate

An estimated rate used to charge overhead costs to products or job orders, based on a selected allocation base anticipated before the accounting period.