Math Problem Statement

In a certain U.S. state, the rate of motor vehicle theft is 605 thefts per 100,000 vehicles. A large parking structure in the state capital has issued 491 parking permits. Note: The vehicles may or may not be stolen from the parking structure. Hint: Is it appropriate to use the Poisson approximation to the binomial distribution? If so, use the Poisson approximation. What is the probability that at least one of the vehicles with a permit will eventually be stolen? (Round your answer to four decimal places.)

Solution

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Math Problem Analysis

Mathematical Concepts

Poisson Distribution
Binomial Distribution
Probability Theory

Formulas

p = 605/100,000 = 0.00605
λ = n * p = 491 * 0.00605 = 2.97055
P(X ≥ 1) = 1 - P(X = 0) = 1 - e^(-λ)

Theorems

Poisson Approximation to the Binomial Distribution

Suitable Grade Level

College-level Probability and Statistics