Exhibit 12-6 The Owner of a Car Wash Wants to See If

question 80

Multiple Choice

Exhibit 12-6
The owner of a car wash wants to see if the arrival rate of cars follows a Poisson distribution. In order to test the assumption of a Poisson distribution, a random sample of 150 ten-minute intervals was taken. You are given the following observed frequencies:
-Refer to Exhibit 12-6. The calculated value for the test statistic equals

• A)-0.18
• B)0.18
• C)1.72
• D)2.89

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Definitions:

Oligopolies

Market structures characterized by a small number of firms controlling a large majority of the market share and having significant impact on prices and production.

Pure Monopolies

Market structures characterized by a single seller that faces no competition, typically due to high barriers to entry.

Socially Desirable

Refers to actions or policies that are considered beneficial to the wider community or society as a whole.