In a large county, suppose there is an average of 8 deaths per year due to lung cancer. Suppose we observe 3 deaths. Would you consider this an unusually low number? Calculate a probability to justify your answer.
We use Poisson distribution
P(x<=3 | lambda=8) = 0.04238
P(x=3 |lambda =8)=0.0286
These probablities are quite small say less than 0.05
It can be construed that it is unusually a low number
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