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Chapter 4: Q. 62 (page 287)

Use the following information to answer the next six exercises: On average, a clothing store gets 120customers per day.

Which type of distribution can the Poisson model be used to approximate? When would you do this?

Short Answer

Expert verified

The Poisson model can be approached by a Binomial distribution when the number of trials,n is veritably large and probability of success,p is veritably small.

Step by step solution

01

Introduction 

We formerly know that both Binomial and Poisson distributions are used when the arbitrary variable of interest is separate and measures the' number of successes'. Still, when the arbitrary trial is similar that

i. The number of trials, nis veritably large ( generallylocalid="1649712627472" >20) i.e.localid="1649712634391" n→∞

02

Explanation

ii. The probability of success, is veritably small ( generally<0.05) i.e.,p→0
similar that np becomes a finite volume, also Poisson model is used to compare the Binomial distribution.
Letnp=λwhich is the mean of the distribution and is finite.

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Most popular questions from this chapter

It has been estimated that only about 30% of California residents have adequate earthquake supplies. Suppose we are interested in the number of California residents we must survey until we find a resident who does not have adequate earthquake supplies.

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