A Company That Receives Most of Its Orders by Telephone

question 58

Multiple Choice

A company that receives most of its orders by telephone conducted a study to determine how long customers were willing to wait on hold before ordering a product.The length of waiting time was found to be a variable best approximated by an exponential distribution with a mean length of waiting time equal to 3 minutes .Find the waiting time at which only 10% of the customers will continue to hold.

• A)2.3 minutes
• B)3.3 minutes
• C)6.9 minutes
• D)13.8 minutes

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Definitions:

GAAP

Generally Accepted Accounting Principles, a set of accounting standards and procedures used in the United States to guide the recording and reporting of financial information.

Intangibles

Intangibles refer to non-physical assets that have value, such as patents, copyrights, trademarks, and goodwill.

Internally Developed

Refers to assets or processes that a company develops using its own resources and without external acquisition.

Unidentifiable Intangible

An intangible asset that lacks physical substance and cannot be easily separated or identified from the business itself.