1. ## [SOLVED] Poisson distribution

trying to revise for exam on tues by doing some examples,

company finds that on average there is a claim for damages which it must pay 7 times in 10 years.

need to find out the probability of at least two claims during the first year.

----

I know how to do the poisson calculations but struggle on the initial figures.

do i need to divide 10/7 to find the mean for 1 year, which is 1.428571429?

then use that as e to the minu 1.428571429?

any help would be great

wayne

2. Originally Posted by silverfox_4me
trying to revise for exam on tues by doing some examples,

company finds that on average there is a claim for damages which it must pay 7 times in 10 years.

need to find out the probability of at least two claims during the first year.

----

I know how to do the poisson calculations but struggle on the initial figures.

do i need to divide 10/7 to find the mean for 1 year, which is 1.428571429?

then use that as e to the minu 1.428571429?

any help would be great

wayne
The mean number of claims for one year is 7/10, not 10/7. That is the parameter to use for the Poisson distribution.