The Poisson Distribution Is Being Used to Approximate a Binomial

question 1

Multiple Choice

The Poisson distribution is being used to approximate a binomial distribution.If n=40 and p=0.06, what value of lambda would be used?

• A)0.06
• B)2.4
• C)0.24
• D)24
• E)40

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Definitions:

Capacity Analysis

The study and evaluation of the production capabilities of a manufacturing facility to understand its maximum output over a period.

Time-Driven Activity-Based Costing

An approach to activity-based costing that uses simple cost drivers like the amount of time required to complete an activity, improving the costing process's simplicity and accuracy.

Tech Support Department

A division within a company responsible for addressing technological issues and providing assistance and guidance on products or services.

Capacity Analysis

The method of calculating the production capabilities required by a company to adapt to fluctuating needs for its products.