
Explanation:
The number of clients received per month follows a Poisson distribution with a mean () of 1. Because the months are independent, the number of clients received over a full year (12 months) follows a Poisson distribution where the mean is proportionally scaled:
The probability of exactly events in a Poisson distribution is given by the formula:
For and :
Therefore, the probability that the firm receives exactly 5 new clients in a year is approximately 0.01274.
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Q.49 Luke Friday, FRM, runs a consultancy firm that offers investment advice to clients around Los Angeles. The number of clients the firm receives in a month is distributed as a Poisson variable with a mean of 1. What is the probability that the firm receives exactly 5 new clients in a year, assuming every client is independent?
A
0.98725
B
0.02034
C
0.01274
D
0.00760