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Compute Probabilities of a Poisson Random Variable

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Compute Probabilities of a Poisson Random Variable
-Suppose the number of babies born during an 8-hour shift at a hospital s maternity wing follows a Poisson distribution with a mean of 7 an hour. Some people believe that the presence of a full moon increases the number of births that take place. Suppose during the presence of a full moon, County Hospital experienced eight consecutive hours with more than eight births. Based on this fact, comment on the belief that the full moon increases the number of births.


Definitions:

Payoff Table

A tabular representation of the possible outcomes or payoffs in a decision-making problem, against various decisions under different states of nature.

State of Nature

In decision making and statistics, the actual but unknown condition affecting outcomes or probabilities.

Monetary Values

The value of an object, service, or resource expressed in terms of money or currency.

Opportunity Loss Table

A table used in decision analysis that quantifies the difference between the payoff from the best action and all other actions for each state of nature.

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