Mathematics 9709 · AS & A Level · The Poisson distribution

The Poisson distribution — practice question

(i)[2]

State three conditions that have to be met for a situation to be modelled by a binomial distribution.

(ii)[3]

George is planning to invest part of his monthly salary. He places a fixed amount of this into an investment each month for 18 months. In any month, the probability that he buys shares in a large company is $0.25$, the probability that he buys shares in a small company is $0.15$, and the probability that he invests in a savings account is $0.6$. Find the probability that George will buy shares in a small company in at least $3$ of these $18$ months.

Worked solution & mark scheme

This 5-mark question has a full step-by-step worked solution and mark scheme. One marking point: Any one correct binomial-distribution property (for example, fixed number of trials, independent trials, two outcomes, constant $p$)

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