The Poisson Distribution Is Being Used to Approximate a Binomial

question 59

Multiple Choice

The Poisson distribution is being used to approximate a binomial distribution.If n=30 and p=0.03, what value of lambda would be used?

• A)0.09
• B)9.0
• C)0.90
• D)90
• E)30

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Definitions:

Equilibrium Quantity

The level of goods or services available and needed at the price of equilibrium.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers.

Surplus

A surplus refers to the amount by which the quantity of a good produced or supplied exceeds the quantity demanded, often leading to price reductions.

Equilibrium Price

The price at which the quantity of a good or service demanded meets the quantity supplied, resulting in no surplus or shortage.