Q. In a certain population, 1 per cent of sheep are brown. How large must a random sample be to ensure that the probability of including at least brown sheep is at least 0.95? (Assume that sampling is with replacement, and use a Poisson approximation.)
I am familiar with using the Poisson distribution to obtain a probability, but this seems to be asking me to do the reverse and I can't wrap my head around it. My thought process was:
success = brown sheep
Pr(>=1 success out of n trials) >= 0.95
x >= 1
lambda = np = 0.01n
Solve for n using the Poisson equation. But this is algebraically tricky (at my level anyway) and this question was worth very few marks. What am I missing?
Thanks so much.
Using a binomial distribution, we'd be looking at the complement of the probability of getting no brown sheep in $n$ trials. That is, we'd be looking for $n$ such that
$$\binom n 0 p^0 (1-p)^n < 0.05,$$
where $p = 0.01$ is the probability of seeing a brown sheep. With the Poisson approximation, we'd be looking at
$$\frac{\lambda^0 e^{-\lambda}}{0!} = e^{-\lambda} < 0.05,$$
where $\lambda = np$. That amounts to $-\lambda< \log(0.05)$, or $n > 100\log(20) \approx 299.57$. So $n=300$ should do.
Contrast this with the direct calculation from the binomial distribution:
$$n\log(1-p) < \log(0.05) \implies n > 298.07$$
In other words, you'd be off by $1$ or $2$ samples using the approximation.