A Catalog Company That Receives the Majority of Its Orders

question 142

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 1.5 minutes will hang up before placing an order?

• A) 0.86466
• B) 0.60653
• C) 0.39347
• D) 0.13534

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Definitions:

Straight Line

The shortest distance between two points without any curve or bend, often used in mathematical and geometric contexts.

Demand Curve

A graph representing the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at various prices.

Supply Curve

A graph that shows the relationship between the price of a good and the quantity of that good that producers are willing to supply.

Y Axis

The vertical line on a graph or chart, which typically represents the range of values for a variable being measured.