Customers Arrive According to a Poisson Distribution

question 126

Multiple Choice

Customers arrive according to a Poisson distribution.The average number of customer arrivals per hour is three.The probability that four customers will arrive in the next two hours is:

• A)less than or equal to 0.10.
• B)greater than 0.10 but less than or equal to 0.12.
• C)greater than 0.12 but less than or equal to 0.14.
• D)greater than 0.14.

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Definitions:

External Costs

Costs incurred by society as a whole due to economic activities but not reflected in the market price or borne by the producer or consumer involved.

Pollution Abatement

Actions or measures taken to reduce, control, or eliminate pollution and its negative impacts on the environment.

Socially Optimal

A condition or output level where the social welfare is maximized, taking into account both the benefits to consumers and the costs to producers.

Marginal Benefit

The additional satisfaction or utility that an individual gains from consuming one more unit of a good or service.