An automobile manufacturer is concerned about a fault in the braking mechanism of a particular model. The

Question:

An automobile manufacturer is concerned about a fault in the braking mechanism of a particular model. The fault can, on rare occasions, cause a catastrophe at high speed. The distribution of the number of cars per year that will experience the fault is a Poisson random variable with A = 5.

(a) What is the probability that at most 3 cars per year will experience a catastrophe?

(b) What is the probability that more than 1 car per year will experience a catastrophe?

Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...