Question: Let y 1 , y 2 , . . . , y n be a random sample from a Poisson distribution with mean . Suppose

Let y1, y2, . . . , yn be a random sample from a Poisson distribution with mean λ. Suppose we use y̅ as an estimator of λ. Derive a (1 - α)100% confidence interval for λ. Start with the pivotal statistic y - A Z = VA/n

and show that for large samples, Z is approximately a standard normal random variable. Then substitute y̅ for λ in the denominator (why can you do this?) and follow the pivotal method of Example 7.6.

y - A Z = VA/n

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