In: Statistics and Probability
We can model the number of stock transactions in a given time period by Poisson distribution as it satisfies below conditions.
a.
Average number of transactions per month = 15/12 = 1.25
b.
X ~ Poisson( = 1.25)
probability that there will be no stock transactions for a month = P(X = 0)
= 0.2865
b.
probability that there will be exactly one transaction for a month = P(X = 1)
= 0.3581
c.
probability that there will be more than one transaction per month = P(X > 1)
= 1 - P(X = 0) - P(X = 1)
= 1 - 0.2865 - 0.3581
= 0.3554