The question asks for the probability of observing more than two adverse reactions ('bad reaction') in a group of 2,000 individuals, given a small individual probability of a bad reaction.
Since $n$ is large and $p$ is small, this scenario can be effectively modeled using the Poisson distribution as an approximation to the binomial distribution.
The parameter $\lambda$ (lambda) for the Poisson distribution is calculated as:
$ \lambda = n \times p $
Substituting the values:
$ \lambda = 2000 \times 0.001 = 2 $
The Poisson probability mass function is given by:
$ P(X=k) = \frac{e^{-\lambda} \lambda^{k}}{k!} $
We want to calculate $P(X > 2)$. It's easier to calculate the complement probability, $P(X \le 2)$, and subtract it from 1:
$ P(X > 2) = 1 - P(X \le 2) $
$ P(X \le 2) = P(X=0) + P(X=1) + P(X=2) $
Now, sum these probabilities to find $P(X \le 2)$:
$ P(X \le 2) = e^{-2} + 2e^{-2} + 2e^{-2} = 5e^{-2} $
Finally, calculate the desired probability $P(X > 2)$:
$ P(X > 2) = 1 - P(X \le 2) = 1 - 5e^{-2} $
This can also be written as:
$ P(X > 2) = 1 - \frac{5}{e^{2}} $
This result matches Option A.