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The number of times that a person contracts a cold in a given year is a Poisson random variable with parameter =5. Suppose that a new wonder drug (based on large quantities of vitamin C) has just been marketed that reduces the Poisson parameter to =3 for 75 percent of the population. For the other 25 percent of the population, the drug has no appreciable effect on colds. If an individual tries the drug for a year and has 2 colds in that time, how likely is it that the drug is beneficial for him or her?

Short Answer

Expert verified

The probability of the drug helping him is 0.89.

Step by step solution

01

Given information

We assume that the number of times person contracts a cold is Poisson random variable where =5. a new drug reduces the Poisson parameter to =3 for 75% of the population while for others nothing significant happens. If an individual tries the drug for a year and has precisely 2 colds in that time we calculate the probability that it is beneficial for him.

02

Substitute the concept

Firstly, let Abe an occasion such that (A)=0.75Ac=0.25and it represents probability that drug is beneficial for the patient.

We have:

(AX=2)=(X=2,A)(X=2)=(X=2A)(A)(X=2)

=(X=2A)(A)(X=2A)(A)+X=2AcAc

03

Calculation

We calculate,

(X=2A)=e-3322!=0.4482=0.224

X=2Ac=e5522!=0.1682=0.084

Currently we plug in the results in previously accepted expressions:

(AX=2)=0.2240.750.2240.75+0.0840.25=0.1680.189=0.89

04

Final answer

The probability of drug helping him is 0.89. Hence, we are done.

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