If the rate at which accidents occur in a U.S. city is, on average, three every day, calculate the probability that more than 5 accidents occur on a single day. | Financial Risk Manager Part 1 Quiz - LeetQuiz
Financial Risk Manager Part 1
Explanation:
Explanation
This is a Poisson distribution problem where:
λ (mean rate) = 3 accidents per day
We need P(N > 5) where N is the number of accidents
Poisson distribution models rare events occurring at a constant average rate
λ = 3 represents the average number of accidents per day
The complement rule: P(N > 5) = 1 - P(N ≤ 5)
The answer 0.084 corresponds to option D
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If the rate at which accidents occur in a U.S. city is, on average, three every day, calculate the probability that more than 5 accidents occur on a single day.