The Random Variable X Is the Number of Occurrences of an Event

question 38

Multiple Choice

The random variable x is the number of occurrences of an event over an interval of ten minutes. It can be assumed that the probability of an occurrence is the same in any two time periods of an equal length. It is known that the mean number of occurrences in ten minutes is 5.3. The probability that there are less than 3 occurrences is

• A) .0659.
• B) .0948.
• C) .1016.
• D) .1239.

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Definitions:

Net Present Value

The economic distinction based on the present valuation of incoming versus outgoing cash flows during a fixed period.

Profitability Ratio

A class of financial metrics used to evaluate a business's ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time.

Average Accounting Return

A financial ratio that measures the average net income a company expects to earn from an investment compared to its initial cost.