Rare-event Poisson approximation

A rare defect strikes each of 10001000 independent units with probability 0.0030.003. Using the appropriate rare-event approximation to the count of defects, what is P(exactly 0 defects)P(\text{exactly }0\text{ defects})? (to 4 decimals)

Show hints (2)+
  1. Large n, small p, moderate np ⇒ Poisson(np); find λ = np yourself.
  2. P(0) = e^(−λ).

Answer

Reveal answer →

0.0498 (± 0.0005)

Create a free account to see the full worked solution and track your progress.

Interview format: Numerical Reasoning Tests, Options Trading

Related questions