Consider a Poisson Distribution with an Average of 3 Customers

question 28

Multiple Choice

Consider a Poisson distribution with an average of 3 customers per minute at the local grocery store.If X = the number of arrivals per minute,find the probability of 10 customers or fewer arriving within a minute.

• A).9998
• B).9990
• C).0008
• D).0498

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Definitions:

Distorting Tax

A tax that alters the economic behavior of individuals and businesses from what they would have chosen in the absence of the tax.

Economic Welfare

The overall well-being of individuals and societies, often assessed by factors such as wealth, health, and happiness.

Benefits-Received Principle

The concept that those who benefit from public goods and services should bear the costs of providing them, in proportion to the benefit received.

Progressive Income Tax

A tax system where the tax rate increases as the taxable amount increases, placing a higher burden on wealthier individuals.