Banner Mattress and Furniture Company wishes to study the nu

Banner Mattress and Furniture Company wishes to study the number of credit applications received per day for the last 300 days.

Number of Credit Applications

Frequency (Number of Days)

0

50

1

77

2

81

3

48

4

31

5 or more

13

To interpret, there were 50 days on which no credit applications were received, 77 days on which only one application was received, and so on. Would it be reasonable to conclude that the population distribution is Poisson with a mean of 2.0? Use the .05 significance level. (Hint: To find the expected frequencies use the Poisson distribution with a mean of 2.0. Find the probability of exactly one success given a Poisson distribution with a mean of 2.0. Multiply this probability by 300 to find the expected frequency for the number of days in which there was exactly one application. Determine the expected frequency for the other days in a similar manner.)

Our conclusion is:

The test is inconclusive.

Reject the null hypothesis, it is not a Poisson distribution with mean of 2.

Do not reject the null hypothesis, this distribution is normal.

Do not reject the null hypothesis, it could be a Poisson distribution with mean of 2.

Reject the null hypothesis, it is a uniform distribution

Number of Credit Applications	Frequency (Number of Days)
0	50
1	77
2	81
3	48
4	31
5 or more	13

Solution

Goodness of Fit Test observed expected O - E (O - E)