Results 1 to 3 of 3

Math Help - Binomial distribution va. Poisson distribution

  1. #1
    Newbie
    Joined
    Sep 2012
    From
    Austria
    Posts
    15

    Binomial distribution va. Poisson distribution

    Consider a bank which has a set of 550 loans. The bank estimates, that 4 out of
    100 loans will get problems each year. Calculate the probability that 10,17,25 and
    40 loans will get problems next year (use the binomial distribution and the poisson
    distribution and compare the results).

    I tried to use the binomial formula:



    where n=550
    k=10
    p=0.04

    My result is 0.18% which in my opinion makes not much sense as for 550 Loans there should be 22 defaults...

    for the Poisson distribution I got 2.77^(-21)

    I put in the figures in the following formula:



    where k=10
    and lambda=0.04

    Thx in advance
    Follow Math Help Forum on Facebook and Google+

  2. #2
    Senior Member MaxJasper's Avatar
    Joined
    Aug 2012
    From
    Canada
    Posts
    482
    Thanks
    54

    Lightbulb Re: Binomial distribution va. Poisson distribution

    Binomial:
    P[x={10,17,25,40}|550, .04] = {0.0017997, 0.051547, 0.066349, 0.00012953}


    Poisson:

    P[x={10,17,25,40}|550*0.04] = {{0.0020417, 0.051956, 0.06538, 0.00017013}
    Last edited by MaxJasper; October 10th 2012 at 02:03 PM.
    Follow Math Help Forum on Facebook and Google+

  3. #3
    Newbie
    Joined
    Nov 2012
    From
    Kunming
    Posts
    3

    Re: Binomial distribution va. Poisson distribution

    There are a few different order statistics formulas that include one for a maximum, one for a minimum and one for a distribution that is so many places from the minimum or the maximum.
    snapback obey snapback new era pas cher shox nike femme pas cher
    Follow Math Help Forum on Facebook and Google+

Similar Math Help Forum Discussions

  1. Binomial Approximation to Poisson Distribution
    Posted in the Advanced Statistics Forum
    Replies: 1
    Last Post: September 23rd 2011, 10:22 PM
  2. Poisson and Binomial distribution clarification?
    Posted in the Statistics Forum
    Replies: 3
    Last Post: March 7th 2011, 10:41 AM
  3. Poisson distribution and asymptotic normal distribution.
    Posted in the Advanced Statistics Forum
    Replies: 0
    Last Post: August 18th 2010, 05:52 AM
  4. Replies: 1
    Last Post: June 6th 2010, 03:47 AM
  5. Binomial and Poisson Distribution.
    Posted in the Statistics Forum
    Replies: 1
    Last Post: October 17th 2008, 01:27 PM

Search Tags


/mathhelpforum @mathhelpforum