Write down the exact distribution
Y∼B(150,0.02) The question asks for the exact binomial probability, not a Poisson approximation.
Write down the binomial probability function
P(Y=y)=(y150)(0.02)y(0.98)150−y This is the exact model; the Poisson distribution would only approximate it.
Evaluate P(Y=0)
P(Y=0)=(0150)(0.02)0(0.98)150=0.048296 Substitute y=0 into the binomial probability function.
Evaluate P(Y=1)
P(Y=1)=(1150)(0.02)1(0.98)149=0.147845 Substitute y=1 into the binomial probability function.
Evaluate P(Y=2)
P(Y=2)=(2150)(0.02)2(0.98)148=0.224785 Substitute y=2 into the binomial probability function.
Evaluate P(Y=3)
P(Y=3)=(3150)(0.02)3(0.98)147=0.226314 Substitute y=3 into the binomial probability function.
Evaluate P(Y=4)
P(Y=4)=(4150)(0.02)4(0.98)146=0.169735 Substitute y=4 into the binomial probability function.
Evaluate P(Y=5)
P(Y=5)=(5150)(0.02)5(0.98)145=0.101148 Substitute y=5 into the binomial probability function.
Add the terms
P(Y≤5)=0.048296+0.147845+0.224785+0.226314+0.169735+0.101148=0.918123 These are all the outcomes required.
Round to the required accuracy
P(Y≤5)=0.9181(4 d.p.) The unrounded exact value is 0.918123….
Compare with the Poisson approximation
λ=np=3,P(Y≤5)≈0.9161(Poisson)versus0.9181(exact binomial) The Poisson approximation with λ=np=3 gives 0.9161, compared with the exact binomial value 0.9181, both to the stated accuracy. The Poisson value is only an estimate of the exact binomial probability.
Recall the conditions for a Poisson model
singly, independently, at a constant mean rate A Poisson model requires events to occur singly, independently and at a constant mean rate.
Recall the mean and variance of a Poisson distribution
E(X)=Var(X)=λ For a Poisson distribution the mean and the variance are both equal to λ.
Note that the probabilities of a Poisson distribution sum to 1
x=0∑∞x!e−λλx=1 The Poisson probabilities form a complete probability distribution.
Select the matching option
P(Y≤5)=0.9181 This is the exact binomial probability.