Poisson: 3 purchases in an hour; based on 7 customers per hour with 65% probability of purchasing

148 Views Asked by At

Disclaimer: It's a homework question worth a measly 1% of total grade, but I am actually interested in understanding the problem properly.

I've been given a question stating that 7 customers are expected to visit a website in any given hour, and that there is a 65% chance of a customer making a purchase. What is the probability that 3 purchases are made in an hour?

To my mind, probability of a purchase, therefore is: $\lambda = 7 \times 0.65 = 4.55$
Am I on the right track? Even if so, how to account for the notion of "3 purchases"?

I'm tempted to solve for: $1 - ([X=0] + [X=1] + [X=2]) = 0.831968$, but not sure that it answers the question posed.

Also, teacher said we may have invoke an identity: "$e$ to the power of $x$", but $e$ to the power of $3$ is $20.0855$, which leaves me rather baffled.

As I said... not so much interested in just getting the answer, but would like directions on how to solve the question.

Thanks and regards,

James

1

There are 1 best solutions below

1
On

Yes, the process regarding the purchases will be a Poisson Process too with the new rate being $\lambda = 7 * 0.65 = 4.55$.

Let N(t) be the purchases made till time t. Using the formula for number of arrivals till time t, $Pr[N(t) = n] = \frac{e^{-\lambda t}(\lambda t)^n}{n!}$ . In your case, $n$ is $3$ and $t$ is $1$.

In case, you are wondering about how the formula for $Pr[N(t) = n]$ is derived, reading http://www.randomservices.org/random/poisson/ will be helpful.