Banner Mattress and Furniture Company desires to study the number of credit applications received each day for the last 300 days. The information is reported on next page.
|
Number of Credit Applications
|
Frequency (Number of Days)
|
|
0
|
50
|
|
1
|
77
|
|
2
|
81
|
|
3
|
48
|
|
4
|
31
|
|
5 or more
|
13
|
To interpret, there were 50 days on which no credit applications were received, 77 days on which only 1 application was received, and so on. Would it be reasonable to conclude that population distribution is Poisson with mean of 2.0? Use the .05 significance level. Hint: To find out the expected frequencies employ the Poisson distribution with mean of 2.0. Find out the probability of exactly one success given a Poisson distribution with mean of 2.0. Multiply this probability by 300 to find out the expected frequency for number of days in which there was exactly one application. Find out the expected frequency for other days in similar manner.