The Local Police Department Must Write,on Average,5 Tickets a Day

question 179

Multiple Choice

The local police department must write,on average,5 tickets a day to keep department revenues at budgeted levels.Suppose the number of tickets written per day follows a Poisson distribution with a mean of 6.5 tickets per day.Interpret the value of the mean.

• A)The number of tickets that is written most often is 6.5 tickets per day.
• B)Half of the days have less than 6.5 tickets written,and half of the days have more than 6.5 tickets written.
• C)If we sampled all days,the arithmetic average or expected number of tickets written would be 6.5 tickets per day.
• D)The mean has no interpretation since 0.5 ticket can never be written.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, ending with the net income or loss for the period.

Holding Gain

The increase in value of an asset held over a period, not realized until the asset is sold.

LIFO

An inventory valuation method, "Last In, First Out," where the most recently produced or acquired items are recorded as sold first.

Current Cost Profits

The earnings achieved by a company based on the replacement costs of the assets used in its operations rather than historical cost accounting.