A certain type of copper wire has a mean number of 05 flaws

A certain type of copper wire has a mean number of 0.5 flaws per meter.

the cost of repairing the flaw in the copper wire is $8 per flaw. Find the

mean and the standard deviation of the distribution of repair costs for a 10-meter length of wire in

question.

Solution

Repair costs will aslo have poisson distribution with:

mean (rate) = 0.5*8 = 4$ per meter

this mean rate is the lambda parameter

and std dev = sqrt(lambda) = 2