Suppose That the Number of Calls Coming Per Minute into an Airline

question 1

Multiple Choice

Suppose that the number of calls coming per minute into an airline reservation center follows a Poisson distribution.Assume that the mean number of calls is 3 calls per minute.The probability that no calls are received in a given one-minute period is _______.

• A)0.0498
• B)0.0508
• C)0.0528
• D)0.0548
• E)0.0558

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Definitions:

Internal Rate

Typically refers to the Internal Rate of Return (IRR), a financial metric used to estimate the profitability of potential investments.

Payback Period

The length of time it takes for an investment to generate enough cash flow to recover its initial cost.

Salvage Value

The expected remaining valuation of an asset after its service life has ended.

Straight-Line Method

A method of allocating the cost of a tangible asset over its useful life in equal annual installments.