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:

Natural Rate

The level of economic activity at which there is no cyclical unemployment; often refers to the natural rate of unemployment where the labor market is in equilibrium.

Socially Optimal

A state of allocation of resources that achieves the best possible outcomes for society as a whole, considering both efficiency and equity.

Short-Run Aggregate-Supply

The total supply of goods and services that firms in an economy plan on selling during a specific time period when some resources (e.g., wages and resource prices) are fixed.

Trade-Off

A scenario where one sacrifices a certain attribute or characteristic to gain another.