On the Average, 6

question 76

Essay

On the average, 6.7 cars arrive at the drive-up window of a bank every hour. Define the random variable X to be the number of cars arriving in any hour.
a.What is the appropriate probability distribution for X? Explain how X satisfies the properties of the distribution.
b.Compute the probability that exactly 5 cars will arrive in the next hour.
c.Compute the probability that no more than 5 cars will arrive in the next hour.

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Definitions:

Variable Costs

Expenses that fluctuate in direct proportion to production or sales figures, like direct labor and raw materials.

Variable Costing

A costing method that only includes variable production costs in the cost of goods sold and treats fixed overhead as a period expense.

Fixed Overhead

Expenses that do not vary with the level of production or sales, including rent, salaries, and insurance costs.

Period Cost

Costs that are not directly tied to the production process and are instead expensed in the period they are incurred, such as selling, administrative, and other expenses.