Suppose that is the number of cars per minute that pass through a certain intersection, and that has the Poisson distribution. If the mean of is equal to , what is the variance of ?
Explanation for the correct option:
Determine the variance.
Recall that the mean of a Poisson distribution is numerically equal to its variance. It is given that , the number of cars per minute that pass through a certain intersection has the Poisson distribution with the mean of . Thus, its variance will be .
, matches the variance calculated in the first step.
Thus, option B is correct.
Explanation for the incorrect option:
has the wrong units and cannot represent the variance of the number of cars . The variance must have units equivalent to the square of the units of the random variable, namely, .
Thus option A is incorrect.
Thus, option B is the correct option.