Every student applicant at a certain university is declined with probability 0.3

Question

Every student applicant at a certain university is declined with probability 0.3. In other words, each decision to admit can be modeled as a Bernoulli random variable. Assume that these decisions are independent. If the number of applicants in 2016 has the Poisson distribution, with parameter 900, use the MGF to find the probability distribution of the number of admitted students. If the probability that a student who starts his/her studies in 2016 manages to graduate is 0.9 (assume independence), what is the expected number of students that graduate?

Explanation / Answer

poisson distribution

lambda =np =900*0.9 =810

Exapected number of students are 810

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