Use the Poisson Distribution to Approximate the Binomial Probability P(x

question 15

Multiple Choice

Use the Poisson distribution to approximate the binomial probability P(x = 4) when n = 1000, p = .001.

• A).0617
• B).0992
• C).0234
• D).1182
• E).0153

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Definitions:

Behavioral Economists

Investigators who explore how various psychological, cognitive, emotional, cultural, and social factors determine the economic decisions of both individuals and organizations.

Time Inconsistency

A situation where a person's preferences change over time in such a way that what is preferred at one point in time is inconsistent with what is preferred at another time.

Behavioral Economics

A field of economics that examines the effects of psychological, cognitive, emotional, cultural, and social factors on the economic decisions of individuals and institutions.

Economic Behavior

The study of how individuals, households, and organizations make choices to allocate resources in the midst of scarcity and the effects of these decisions on markets and the economy.