Unless stated otherwise in the exercise, use software to find the exact Poisson.

Question 5.50

5.50 Initial public offerings.

The number of companies making their initial public offering of stock (IPO) can be modeled by a Poisson distribution with a mean of 15 per month.

  1. What is the probability of three or fewer IPOs in a month?
  2. What is the probability of 10 or fewer in a two-month period?
  3. What is the probability of 200 or more IPOs in a year?
  4. Redo part (c) using the Normal approximation.