Your firm uses a proprietary forecasting model that requires parameter estimates of random variables that are believed to follow the Poisson distribution. You are attempting to assess the probability of the number of defects in an assembly production process for a given company. Assume that there is a 0.005 probability of a defect for every production run. What is the probability of 7 defects in 1,000 production runs?
Your firm uses a proprietary forecasting model that requires parameter estimates of random variables that are believed to follow the Poisson distribution. You are attempting to assess the probability of the number of defects in an assembly production process for a given company. Assume that there is a 0.005 probability of a defect for every production run. What is the probability of 7 defects in 1,000 production runs? A.3.0%; B.4.4%; C.8.6%; D.10.4%