14 According to the Deloitte EV Survey 5 of respondents indi

14. According to the Deloitte EV Survey, 5% of respondents indicated that they would be willing to pay an extra $500 or more for an electric vehicle versus one with a gasoline engine. A random sample of 25 adults has been selected. Use the Poisson distribution to approximate the binomial distribution to determine the probability that more than two adults from this sample would be willing to pay an extra $500 or more for an electric vehicle versus one with a gasoline engine.

Solution

prob p =0.05

n = 25

Hence np = 1.25

It can be said to follow poisson distribution with mean = 1.25

P(X>=2) = 0.3554