document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=5080>Question 5080</A>: <I><SPAN STYLE=\"word-break: break-all;\"> In a certain country, there is a bank failure once every six days, on average.  What is the probability of at least one bank failure in the next 30 days?\r<BR>\n" );
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document.write( "Is this set up 1 less 1/6? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #2575 by </B><A HREF=/tutors/aboutme.mpl?userid=khwang><B>khwang(438)</B></A><img src=\"/images/stars/stars-10.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=khwang><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=2575\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\">  I think youu have to use Poisson distribution<BR>\n" );
document.write( " the mean (avg) of one bank failing is 1 for every 6 days.<BR>\n" );
document.write( " Hence, the mean is 5 =30/6 banks failing for 30 days .<BR>\n" );
document.write( " Now lambda = 5,<BR>\n" );
document.write( " Let the random variable of Poisson dist. with mean u = 5 (in 30 days).<BR>\n" );
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document.write( " We have Pr(X=k) = u^k/k! *e^(-u)\r<BR>\n" );
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document.write( " Hence, Pr(X =>1) = 1- Pr(X =0) = 1 - e^(-5) = 0.993\r<BR>\n" );
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document.write( " Kenny<BR>\n" );
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