Suppose that on average 1 person in 1000 makes a numerical e
Suppose that, on average, 1 person in 1000 makes a numerical
error in preparing his or her income tax return. If 10,000 returns are selected
at random and examined, find the probability that 6, 7, or 8 of them contain
an error.
Solution
Given X follows Poisson distribution with mean =10000/1000 = 10
P(X=x)=(10^x)*exp(-10)/x! for x=0,1,2,...
So the probability is
P(X=6) =(10^6)*exp(-10)/6! =0.06305546
P(X=7) = (10^7)*exp(-10)/7! =0.09007923
P(X=8)= (10^8)*exp(-10)/8! =0.112599
