Certain region according to a poisson process

Assignment Help Basic Statistics

Reference no: EM131130721

Suppose that traffic accidents occur in a certain region according to a Poisson process with rate λ = 2 per day. Suppose also that the number M of persons involved in a given accident has a geometric distribution with parameterp = 1/2. That is,

(a) Calculate the mean and the variance of the number of persons involved in an accident over an arbitrary week.

(b) Let T be the random variable denoting the time between the first person and the second person involved in an accident, from the initial time. Calculate the distribution function of T

Reference no: EM131130721

Questions Cloud

Determine the present value of the mixed stream of cash flow : Determine the present value' of the mixed stream of cash flows using a 5% discount rates. How much would you be willing to pay for an opportunity to buy this stream, assuming that you can at best earn 5% on your investments?

What are the long-term fiscal imbalances for united states : What are the long-term fiscal imbalances for the United States? New Methods to Measure the Long-Term Fiscal Imbalances for the United States

Determine the equivalent monthly cost of each alternative : A company needs a new car and has the following options: (1) purchase the car cash or (2) lease the car. They are expecting to use the car for 2 years. Determine the equivalent monthly cost of each alternative.

Suppose that all investors expect that interest rates : Suppose that all investors expect that interest rates for the 4 years will be as follows: If you have just purchased a 4-year zero-coupon bond, what would be the expected rate of return on your investment in the first year if the implied forward rate..

Certain region according to a poisson process : Suppose that traffic accidents occur in a certain region according to a Poisson process with rate λ = 2 per day. Suppose also that the number M of persons involved in a given accident has a geometric distribution with parameterp = 1/2. That is,

Determine present value : Determine, for each of the perpetuities: a. The appropriate present value interest factor. b. The present value.

Monthly sales of a dealer of a certain luxury : Suppose that the monthly sales of a dealer of a certain luxury car constitute a conditional Poisson process such that A is a discrete random variable taking the values 2, 3, or 4, with probabilities 1/4, 1/2, and 1/4, respectively.

Requires an initial installed equipment cost : A company is considering a 3-year project that requires an initial installed equipment cost of $16,000. The project engineer has estimated that the operating cash flows will be $5,000 in year 1, $6,000 in year 2, and $8,000 in year 3. If the tax rate..

Describe the present state of the economy focusing : Description of the present state of the economy focusing on all the measures of the economy that are important such as GDP, M2, inflation rates, unemployment rates, growth rates, exchange rates, trade balances, etc.

User Account

All Pages