Question
Use R to Solve the Problem. Suppose that, on average, 1 person in 1000 makes a numerical error in preparing their income tax return. If
Use R to Solve the Problem.
Suppose that, on average, 1 person in 1000 makes a numerical error in preparing their income tax return. If 10,000 returns are selected at random, find the probability that 6 or 7 or 8 of them contain a numerical error.
A) (5 Marks) Part 1 (Use R) - Use binomial distribution to find the exact probability. Let X be the number of returns with an error. X ~Bin (n =10000, p = 0.001). Want to find P[6X8].
B) (5 Marks) Part 2 (Use R) - Use Poison distribution to approximate the Binomial probability. Let Y be the Poison distribution with parameter =10. When n is very large, p is very small, and np=100000.001=10. With the aid of computer software, we can see how accurate the approximation is. X ~Bin (n =10000, p = 0.001) can be approximated by Y ~Poisson ( = 10).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started