Compute Probabilities of a Poisson Random Variable

question 132

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 6.6. Find the probability that the next two months will both result in four accidents each occurring on this stretch of road.

• A) 0.011568
• B) 0.107553
• C) 0.215105
• D) 0.002341

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Definitions:

Maximizes Satisfaction

Refers to the act of choosing options that result in the highest level of satisfaction or utility for an individual or group, based on preferences.

Rational

Behaviors and decisions that maximize a person’s chances of achieving his or her goals. See rational behavior.

Unlimited Money Incomes

A hypothetical scenario where individuals or entities have access to an infinite amount of money resources.

Total Utility

The total satisfaction received from consuming a given total quantity of a good or service.