CA Foundation Exam  >  CA Foundation Questions  >  If X ~ P (m) and its coefficient of variation... Start Learning for Free
If X ~ P (m) and its coefficient of variation is 50, what is the probability that X would assume only non-zero values?
  • a)
    0.018
  • b)
    0.982
  • c)
    0.989
  • d)
    0.976
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
If X ~ P (m) and its coefficient of variation is 50, what is the proba...
Given:
X ~ P(m) (X follows a Poisson distribution with parameter m)
Coefficient of variation = 50%

Definition:
The coefficient of variation (CV) is a measure of relative variability and is calculated as the standard deviation divided by the mean, expressed as a percentage.

Formula:
CV = (standard deviation / mean) * 100

Approach:
To find the probability that X would assume only non-zero values, we need to find the probability of X being greater than zero. Since X follows a Poisson distribution, we can use the formula for the probability mass function (PMF) of the Poisson distribution to calculate this probability.

Solution:

Step 1: Find the mean (m) and standard deviation (σ) of X
- We know that CV = (σ / m) * 100
- Rearranging the formula, we get σ = (CV / 100) * m
- Since X follows a Poisson distribution, the mean (m) and standard deviation (σ) of X are both equal to m.

Step 2: Calculate the probability of X being greater than zero
- The probability mass function (PMF) of the Poisson distribution is given by P(X=k) = (e^(-m) * m^k) / k!
- To find the probability of X being greater than zero, we need to calculate P(X>0) = 1 - P(X=0)
- P(X=0) = (e^(-m) * m^0) / 0! = e^(-m)
- P(X>0) = 1 - e^(-m)

Step 3: Substitute the value of m into the equation for P(X>0)
- From step 1, we know that σ = (CV / 100) * m
- Rearranging the formula, we get m = (100 / CV) * σ
- Substituting the value of m into P(X>0), we get P(X>0) = 1 - e^(-(100 / CV) * σ)

Step 4: Calculate the probability using the given coefficient of variation
- CV = 50% = 0.5
- Substituting CV = 0.5 into the equation for P(X>0), we get P(X>0) = 1 - e^(-(100 / 0.5) * σ) = 1 - e^(-200 * σ)

Step 5: Find the probability that X assumes only non-zero values
- P(X assumes only non-zero values) = P(X>0) = 1 - e^(-200 * σ)

Step 6: Substitute the value of σ
- From step 1, we know that σ = m
- Substituting σ = m into the equation for P(X assumes only non-zero values), we get P(X>0) = 1 - e^(-200 * m)

Step 7: Find the probability using the given distribution
- Since X follows a Poisson distribution, the parameter m is given in the problem.
- Substitute the value of m into the equation for P(X assumes only non-zero values), we get P(X>0) = 1 - e^(-200 * m)

Step
Explore Courses for CA Foundation exam
If X ~ P (m) and its coefficient of variation is 50, what is the probability that X would assume only non-zero values?a)0.018b)0.982c)0.989d)0.976Correct answer is option 'B'. Can you explain this answer?
Question Description
If X ~ P (m) and its coefficient of variation is 50, what is the probability that X would assume only non-zero values?a)0.018b)0.982c)0.989d)0.976Correct answer is option 'B'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about If X ~ P (m) and its coefficient of variation is 50, what is the probability that X would assume only non-zero values?a)0.018b)0.982c)0.989d)0.976Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If X ~ P (m) and its coefficient of variation is 50, what is the probability that X would assume only non-zero values?a)0.018b)0.982c)0.989d)0.976Correct answer is option 'B'. Can you explain this answer?.
Solutions for If X ~ P (m) and its coefficient of variation is 50, what is the probability that X would assume only non-zero values?a)0.018b)0.982c)0.989d)0.976Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of If X ~ P (m) and its coefficient of variation is 50, what is the probability that X would assume only non-zero values?a)0.018b)0.982c)0.989d)0.976Correct answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of If X ~ P (m) and its coefficient of variation is 50, what is the probability that X would assume only non-zero values?a)0.018b)0.982c)0.989d)0.976Correct answer is option 'B'. Can you explain this answer?, a detailed solution for If X ~ P (m) and its coefficient of variation is 50, what is the probability that X would assume only non-zero values?a)0.018b)0.982c)0.989d)0.976Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of If X ~ P (m) and its coefficient of variation is 50, what is the probability that X would assume only non-zero values?a)0.018b)0.982c)0.989d)0.976Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice If X ~ P (m) and its coefficient of variation is 50, what is the probability that X would assume only non-zero values?a)0.018b)0.982c)0.989d)0.976Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev