Consider the following statements:
(i) The mean and variance of a Poisson random variable are equal.
(ii) For a standard normal random variable, the mean is zero and the variance is one.
Which ONE of the following options is correct?
Answer
(A)
Explanation
(i) A Poisson random variable with parameter \(\lambda\) has \(P(X = k) = \dfrac{e^{-\lambda}\lambda^{k}}{k!}\), and both its mean and its variance equal \(\lambda\). True.
(ii) The standard normal distribution \(N(0, 1)\) is, by definition, the normal distribution with mean 0 and variance 1; any normal variable is brought to it by \(Z = (X - \mu)/\sigma\). True.
Both statements hold.
Answer: A