
Explanation:
For a Poisson distribution with mean λ:
Therefore:
This is a key property of the Poisson distribution: the mean and variance are equal. This property distinguishes the Poisson distribution from other distributions like the normal distribution (where mean and variance are independent parameters) or the binomial distribution (where variance = np(1-p) ≠ mean = np).
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The rate of registration for the FRM exam by candidates takes on a Poisson distribution with mean λ. Which of the following statements is correct?
A
Mean equals the standard deviation
B
Mean equals the variance
C
Median equals the variance
D
Median, mean and variance are all equal
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