Answer to Question #6518 in Economics for lionel

Question

the number of train commuters who fail to pay for their tickets in a certain region has a Poisson distribution with a mean of 3 per train. if there are 5000 trains per month in a region, find:
a) the expected number of trains with more than 2 non fare-paying commuters
b) the loss to the train company given that the average cost of a train is $10.00

Answer 1

a) P = a^m/m!*e^(-a) = 2^3/3!*e^(-2) = 0.18
N = 0.18*5000 = 900
b) 900*$10
= $9000