You Can Use the Poisson Distribution to Approximate the Binomial

question 48

True/False

You can use the Poisson distribution to approximate the binomial distribution with mean nP when P is small and n is large,such that nP is of only moderate size (preferably nP ≤ 7).

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Definitions:

Market Equilibrium

The state in which the quantity supplied equals the quantity demanded, causing market forces to be in balance.

Competitive Industry

An industry characterized by numerous sellers and buyers, where no single entity has the market power to influence the price of goods or services.

Market Demand

The total quantity of a product or service that consumers are willing and able to purchase at various prices.

Perfectly Competitive

A perfectly competitive market is one where there are many buyers and sellers, all dealing in identical products, and where no single entity can influence the market price.