Consider a Poisson Distribution with an Average of 3 Customers

question 7

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 more than 7 customers arriving within a minute.

• A).0216
• B).0081
• C).0108
• D).0118

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Definitions:

Long-run Cost Structure

The pattern of costs that a firm faces over a long period when it is free to adjust all of its input levels, including investment in new plant and equipment.

Competitive Industry

An industry characterized by many firms offering similar or slightly differentiated products, leading to a high degree of competition and typically lower prices.

Increasing-cost Industry

An industry in which the costs of production increase as the industry expands, often due to limitations in resources or factors of production.