Poisson thinning: exactly two large orders

Orders hit your book as a Poisson process averaging λ=10\lambda = 10 per hour. Independently, each order is "large" with probability 0.30.3 and "small" otherwise. What is the probability of exactly 2 large orders in an hour? Give a decimal to four places.

Show hints (2)+
  1. Thinning a Poisson stream gives a Poisson stream with rate λp\lambda p.
  2. Then evaluate the pmf at k=2k=2 with rate 10⋅0.3=310\cdot 0.3=3.

Answer

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0.224 (± 0.001)

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