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Answer on Other Economics Question for lionel

Question #6518
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
Expert's answer
a) P = a^m/m!*e^(-a) = 2^3/3!*e^(-2) = 0.18
N = 0.18*5000 = 900
b) 900*$10
= $9000

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