A History Professor Finds That When He Schedules an Office

question 53

Multiple Choice

A history professor finds that when he schedules an office hour at the 10:30 a.m. time slot, an average of threestudents arrive. Use the Poisson distribution to find the probability that in a randomly selected office hour inthe 10:30 a.m. time slot exactly seven students will arrive.

• A) 0.0216
• B) 0.0004
• C) 0.0034
• D) 0.0001

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Definitions:

WARP

WARP, or the Weak Axiom of Revealed Preference, is a consistency criterion for consumer choice behavior, suggesting that if a consumer prefers bundle A over bundle B when both are affordable, they should not choose B when A is still affordable.

Bundle

A collection of items or services grouped together as a single package.

Laspeyres Price Index

A price index calculated by taking the ratio of the total cost of purchasing a specified set of goods and services at current prices to the total cost of purchasing the same set of goods and services at base period prices, using base period quantities as weights.

Per Capita Income

The average income earned per person in a given area or country, calculated by dividing the total income by the population size.