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The number of accidents that a person has in a given year is a Poisson random variable with mean \(\lambda .\) However, suppose that the value of \(\lambda\) changes from person to person, being equal to 2 for 60 percent of the population and 3 for the other 40 percent. If a person is chosen at random, what is the probability that he will have (a) 0 accidents and (b) exactly 3 accidents in a certain year? What is the conditional probability that he will have 3 accidents in a given year, given that he had no accidents the preceding year?

Short Answer

Expert verified
The probabilities for a person chosen at random having (a) 0 accidents and (b) exactly 3 accidents are as follows: \(P(X=0) = e^{-2}(0.6) + e^{-3}(0.4)\) \(P(X=3) = e^{-2}\frac{8}{6}(0.6) + e^{-3}\frac{27}{6}(0.4)\) The conditional probability that a person will have 3 accidents in a given year, given that they had no accidents the preceding year, is: \(P(X=3 \mid X_1=0) = e^{-2}\frac{8}{6}(0.6) + e^{-3}\frac{27}{6}(0.4)\)

Step by step solution

01

Calculate the Probability of 0 Accidents using Law of Total Probability

First, we need to find the probability that a person chosen at random will have no accidents in a year. We can use the Law of Total Probability for this: \(P(X=0) = P(X=0 \mid \lambda = 2)P(\lambda = 2) + P(X=0 \mid \lambda = 3)P(\lambda = 3)\) We know that \(P(\lambda = 2) = 0.6\) and \(P(\lambda = 3) = 0.4\). Using the Poisson distribution formula to calculate probabilities for a given mean: \(P(X=k \mid \lambda) = \frac{e^{-\lambda} \cdot \lambda^k}{k!}\) Substituting the values, we get: \(P(X=0) = \frac{e^{-2} \cdot 2^0}{0!} (0.6) + \frac{e^{-3} \cdot 3^0}{0!} (0.4) = e^{-2}(0.6) + e^{-3}(0.4)\)
02

Calculate the Probability of 3 Accidents using Law of Total Probability

Now, we will do the same for the situation when a person has exactly 3 accidents in a year: \(P(X=3) = P(X=3 \mid \lambda = 2)P(\lambda = 2) + P(X=3 \mid \lambda = 3)P(\lambda = 3)\) Using the Poisson distribution formula again, we get: \(P(X=3) = \frac{e^{-2} \cdot 2^3}{3!} (0.6) + \frac{e^{-3} \cdot 3^3}{3!} (0.4) = e^{-2}\frac{8}{6}(0.6) + e^{-3}\frac{27}{6}(0.4)\)
03

Calculate the Conditional Probability of 3 Accidents given 0 Accidents last year using Bayes' Theorem

To calculate the conditional probability \(P(X=3 \mid X_1=0)\), where \(X_1\) represents the number of accidents in the previous year, we can use Bayes' theorem: \(P(X=3 \mid X_1=0) = \frac{P(X_1=0 \mid X=3)P(X=3)}{P(X_1=0)}\) We know the values of \(P(X=3)\) and \(P(X_1=0)\) from the previous steps. To calculate \(P(X_1=0 \mid X=3)\), we consider that the events of having 0 accidents in the previous year and having 3 accidents this year are independent, since the Poisson distribution shows no memory property: \(P(X_1=0 \mid X=3) = P(X_1=0)\) Now, we can substitute all the values and calculate the conditional probability: \(P(X=3 \mid X_1=0) = \frac{P(X_1=0)P(X=3)}{P(X_1=0)} = P(X=3) = e^{-2}\frac{8}{6}(0.6) + e^{-3}\frac{27}{6}(0.4)\) #Final Answer, Probabilities: (a) 0 accidents, (b) 3 accidents, and Conditional Probability for 3 Accidents given 0 Accidents last year# \(P(X=0) = e^{-2}(0.6) + e^{-3}(0.4)\) \(P(X=3) = e^{-2}\frac{8}{6}(0.6) + e^{-3}\frac{27}{6}(0.4)\) \(P(X=3 \mid X_1=0) = e^{-2}\frac{8}{6}(0.6) + e^{-3}\frac{27}{6}(0.4)\)

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Law of Total Probability
When faced with uncertain events, the Law of Total Probability offers a systematic way to think about the likelihood of an outcome by considering all possible scenarios. For example, in the exercise provided, we have to account for two different average rates (means) of the Poisson distribution representing the population.

Using this law, we calculate the probability of having 0 or 3 accidents by considering both possible values of \(\lambda\) and their associated probabilities. The formula reflects the sum of probabilities of disjoint events leading to the same outcome, weighted by their likelihood of occurrence.

For a Poisson random variable with two possible \(\lambda\) rates, the law helps us create a complete picture of the probabilities by breaking down the problem into all possible \(\lambda\) events, providing us a comprehensive approach to understanding the overall probability of the number of accidents.
Poisson Random Variable
Poisson distribution is key when we're interested in counting the number of events that happen within a fixed interval of time or space. The average number of these events is denoted as \(\lambda\), the rate parameter. In the exercise above, accidents happening over the course of a year follow a Poisson distribution.

A crucial aspect of a Poisson random variable is its independence over intervals. This means that the number of accidents in one year doesn't affect the number in another. It's useful because it allows for the simplification of calculations, as past events do not influence future events - this characteristic is called the 'memoryless property'.

The provided formula \(P(X=k \mid \lambda) = \frac{e^{-\lambda} \cdot \lambda^k}{k!}\) is a mathematical representation of the distribution where \(k\) is the number of occurrences, \(\lambda\) is the expected rate, \(e\) is the base of the natural logarithm, and \(k!\) is the factorial of \(k\).
Conditional Probability
Conditional probability deals with finding the probability of an event given that another event has occurred. This concept allows us to update probabilities based on new information, which is exactly what's needed for part of the exercise.

In the example, we have to determine the probability that a person will have 3 accidents in the current year given they had 0 accidents the previous year. To solve this, we use the independence of Poisson random variables across time periods. That means the likelihood of someone having 3 accidents this year doesn't change based on last year’s accident record. This leads to a simplification where the conditional probability is the same as if we were just considering this year alone because of the memoryless property of the Poisson process.

Understanding conditional probability is fundamental because it reveals the interdependence between events, which is often necessary to solve real-world problems that involve sequential or related occurrences.

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