If Arrivals Occur According to the Poisson Distribution Every 20 $\lambda$

question 19

Multiple Choice

If arrivals occur according to the Poisson distribution every 20 minutes, then which is NOT true?

• A)\(\lambda\)= 20 arrivals per hour
• B)\(\lambda\) = 3 arrivals per hour
• C)\(\lambda\) = 1/20 arrivals per minute
• D)\(\lambda\) = 72 arrivals per day

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Definitions:

Inventory

The total amount of goods a company has in stock, including raw materials, work-in-process, and finished goods.

Variable Costs

Expenses that change in proportion to the activity of a business, such as materials and labor costs.

Relevant Costs

Costs that will be affected by a decision in a particular situation, excluding sunk costs and costs that do not differ between alternatives.

Unprofitable Product Lines

Product categories or items that do not generate a profit and may result in a financial loss for the company.