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

---

Definitions:

Table Factors

Mathematical factors used in tables to simplify calculations for things like present values, loan repayments, or depreciation rates.

Present Values

The discounted value of an amount of money at a specific future date, considering a particular interest rate.

Debit Machinery

An accounting entry that reflects an increase in the value of machinery assets on the balance sheet.