Consider a Poisson Distribution with an Average of 3 Customers

question 14

Multiple Choice

Consider a Poisson distribution with an average of 3 customers per minute at the local grocery store. Determine the expected number of customer arrivals for a five-minute period.

• A) 15
• B) 3
• C) 243
• D) 125

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Definitions:

Activity Variance

The difference between budgeted and actual costs due to changes in the level of activity.

Budgeting

Formulating a scheme for managing your funds, highlighting a firm's monetary and practical ambitions.

Tenant-days

A metric used in real estate management to measure the total number of days a property is rented out to tenants over a specific period.

Net Operating Income

The profit a company generates from its normal business operations, excluding expenses and taxes.