In Queuing Problems, Which of the Following Probability Distributions Is

question 123

Multiple Choice

In queuing problems, which of the following probability distributions is typically used to describe the time to perform the service?

• A) binomial
• B) normal
• C) Poisson
• D) negative exponential
• E) lognormal

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Definitions:

Manufacturing Margin

The difference between the cost of production and the selling price of manufactured goods.

Contribution Margin

The amount of revenue from sales that exceeds variable costs, contributing to covering fixed costs and generating profit.

Operating Income

The profit realized from a business's operations, calculated by subtracting operating expenses from gross profit.

Absorption Costing

An approach to pricing that incorporates all production-related costs such as direct materials, direct labor, along with variable and fixed overhead expenses, into the product’s cost.