Theoretical DistributionsMTP June 2023 Series IIQuestion 3978 of 230
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For the Poisson distribution:

Options

AEvents are independent of each other
BAverage rate (events per time period) is constant
CTwo events cannot occur simultaneously
DAll of the above
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Correct Answer

Option dAll of the above

All Options:

  • AEvents are independent of each other
  • BAverage rate (events per time period) is constant
  • CTwo events cannot occur simultaneously
  • DAll of the above

Detailed Solution & Explanation

**Assumptions of a Poisson Process** The Poisson distribution is derived from a Poisson process, which is characterized by the following standard assumptions: 1. **Independence (Option A):** The occurrence of an event in one time interval is independent of its occurrence in any other non-overlapping time interval. 2. **Stationarity / Constant Rate (Option B):** The average rate of event occurrences (average number of events per unit time) is constant throughout the observation period. 3. **Non-simultaneity (Option C):** The probability of two or more events occurring simultaneously in an extremely small time interval is zero. Events must occur individually over time. Since all of the statements in Options A, B, and C are essential assumptions of the Poisson model, the correct option is **Option D (All of the above)**. Hence, **Option D** is the correct answer.

About This Chapter: Theoretical Distributions

Paper

Paper 3: Quantitative Aptitude

Weightage

4-6 Marks

Key Topics

Binomial, Poisson, Normal Distribution

This chapter covers Binomial, Poisson, Normal Distribution and is part of Paper 3: Quantitative Aptitude in the CA Foundation exam.

View Official ICAI Syllabus

Exam Strategy Tip

This topic carries 4-6 Marks weightage. Focus on understanding core concepts rather than memorizing.

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