A Company That Bakes Chocolate Chip Cookies Averages 5

question 29

Multiple Choice

A company that bakes chocolate chip cookies averages 5.2 chocolate chips per cookie. Assume that the number of chocolate chips per cookie follows the Poisson distribution. What is the probability that a randomly selected cookie will contain exactly four chocolate chips?

• A)0.3325
• B)0.1681
• C)0.2960
• D)0.2254

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Definitions:

Total Cost Function

The total cost function describes the total cost of production as a function of the quantity of output, including both fixed and variable costs.

Variable Factor

In economics, it refers to any input whose quantity can be changed in the short term to affect production levels.

Increasing Returns to Scale

A situation in which output increases by a greater proportion than the increase in inputs used.

Average Costs

The total cost of production divided by the total quantity produced, reflecting the cost per unit of output.