A Catalog Company That Receives the Majority of Its Orders

question 104

Multiple Choice

A catalog company that receives the majority of its orders by telephone conducted a study to determine how long customers were willing to wait on hold before ordering a product. The length of time was found to be a random variable best approximated by an exponential distribution with a mean equal to 3 minutes. What proportion of customers having to hold more than 4.5 minutes will hang up before placing an order?

• A) 0.22313
• B) 0.48658
• C) 0.51342
• D) 0.77687

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Definitions:

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used to estimate the population parameter.

Students

Individuals who are enrolled in an educational institution for the purpose of learning.

Unsatisfactory

Not meeting expectations or requirements; inadequate or poor.

Truckload

A shipment large enough to fill an entire truck's cargo space, or a quantity of goods that requires the exclusive use of a truck to transport.