Sami Schmitt Believes That Number of Cars Arriving at His $\alpha$

question 64

Multiple Choice

Sami Schmitt believes that number of cars arriving at his Scrub and Shine Car Wash follow a Poisson distribution. He collected a random sample and constructed the following frequency distribution to test his hypothesis: Using $\alpha$ = 0.05, the appropriate decision for this goodness-of-fit test is ___.

• A) reject the null hypothesis that the observed distribution is Poisson
• B) reject the null hypothesis that the observed distribution is not Poisson
• C) do not reject the null hypothesis that the observed distribution is not Poisson
• D) do not reject the null hypothesis that the observed distribution is Poisson
• E) do nothing

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Definitions:

Premium

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MBI Stock

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Premium

The amount by which the price of a bond or security exceeds its face value or the cost associated with an options contract.