# Question: A firm is considering using the Internet to supplement its

A firm is considering using the Internet to supplement its traditional sales methods. Using data from an industry association, the firm estimates that 1 of every 1,000 Internet hits results in a sale. Suppose the firm has 2,500 hits per day.

a. What is the probability that the firm will have more than five sales in a randomly selected day?

b. What conditions must be satisfied in order for you to make the calculation in part (a)?

c. Use the Poisson approximation to compute the probability that the firm will have more than five sales in a randomly selected day.

d. Is the Poisson approximation accurate?

a. What is the probability that the firm will have more than five sales in a randomly selected day?

b. What conditions must be satisfied in order for you to make the calculation in part (a)?

c. Use the Poisson approximation to compute the probability that the firm will have more than five sales in a randomly selected day.

d. Is the Poisson approximation accurate?

## Relevant Questions

Let y be a random variable having a normal distribution with a mean equal to 50 and a standard deviation equal to 8. Find the following probabilities: a. P(y > 50) b. P(y > 53) c. P(y The R& D department of a company has developed a new home screening test for diabetes. A demonstration of the type of results that may occur was mandated by upper management. Simulate the probability of obtaining at least 24 ...Psychomotor retardation scores for a particular group of manic-depressive patients have approximately a normal distribution with a mean of 930 and a standard deviation of 130. A random sample of 20 patients from the group ...Critical key-entry errors in the data processing operation of a large district bank occur approximately .1% of the time. If a random sample of 10,000 entries is examined, determine the following: a. The expected number of ...The breaking strengths for 1-foot-square samples of a particular synthetic fabric are approximately normally distributed with a mean of 2,250 pounds per square inch (psi) and a standard deviation of 10.2 psi. Find the ...Post your question