The Department of Commerce in a particular state has determined that the number of small businesses that declare bankruptcy per
month is approximately a Poisson distribution with a mean of 6.4. Find the probability that exactly 5 bankruptcies occur next month. A) 0.0589
B) 0.1487
C) 0.1987
D) 0.2987
Let be the discrete random variable that represents the number of events observed over a given time period. If follows a Poisson distribution, then the probability of observing events over the time period is:
Where:
So, the probability that exactly 5 bankruptcies occur next month is: