The Time Between Arrivals at an ATM Machine Follows an Exponential

question 88

Multiple Choice

The time between arrivals at an ATM machine follows an exponential distribution with $\theta = 10$ minutes. Find the probability that more than 25 minutes will pass between arrivals.

• A) 0.670320
• B) 0.917915
• C) 0.329680
• D) 0.082085

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Definitions:

Economies Of Scale

Cost advantages that enterprises obtain due to their scale of operation, typically associated with efficiencies in production as output increases.

Collusion

An agreement between firms in a market to limit competition and manipulate prices or market conditions.

Game Theory

A theoretical framework for conceiving social situations among competing players and predicting their choices of action through mathematical models.

Oligopolists

Companies or entities that are part of an oligopoly, a market structure characterized by a small number of firms controlling a large market share, often leading to less competitive markets.