Use the Poisson Model to Approximate the Probability

question 3

Multiple Choice

Use the Poisson model to approximate the probability. Round your answer to four decimal places.
-The rate of defects among CD players of a certain brand is 1.4%. Use the Poisson approximation to the binomial distribution to find the probability that among 160 such CD players received by a store, there is at most one
Defective CD player.

• A) 0.7615
• B) 0.8935
• C) 0.2385
• D) 0.6551
• E) 0.3449

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Definitions:

Retail Store

A business establishment that sells goods or services directly to consumers, primarily for personal or household consumption.

Depreciation

The systematic allocation of the cost of a tangible asset over its estimated useful life, recognizing the decrease in value over time.

Allocation Bases

Criteria or metrics used to distribute overhead costs to different departments or products in a company, ensuring accurate cost accounting.

Drilling Department

A division within a manufacturing or mining operation dedicated to the process of drilling, such as creating holes in the earth's surface or in materials.