Fitting of Poisson distribution
Banner Mattress and Furniture Company wishes to learn the number of credit applications received per day for the last 300 days. The information is reported on the 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 one application was received, and so on. Would it be practical to end that the population distribution is Poisson with a mean of 2.0? Utilize the .05 significance level. Hint: To find the expected frequencies use the Poisson distribution with a mean of 2.0. Find the possibility of exactly one success given a Poisson distribution with a mean of 2.0. Multiply this possibility by 300 to find the expected frequency for the number of days in which there was exactly one application. Conclude the expected frequency for the other days in a similar manner.