Compute Probabilities of a Poisson Random Variable

question 95

Multiple Choice

Compute Probabilities of a Poisson Random Variable
-The number of road construction projects that take place at any one time in a certain city follows a Poisson distribution with a mean of 5. Find the probability that exactly three road construction projects are currently taking place in this city.

• A) 0.140374
• B) 0.051862
• C) 0.272887
• D) 0.100819

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Definitions:

Minimizing Losses

Minimizing Losses involves strategies and actions a business or individual might employ to reduce financial setbacks or decrease the severity of financial downturns.

Total Loss

The complete depletion of value of an asset or the sum of expenses surpassing all revenues, resulting in no net gain.

Most Efficiently

The method or process that achieves the best possible outcome with the least waste of resources.

Output

The amount of goods or services produced by a company, industry, or economy within a given period.