The University Police Department Must Write, on Average, Five Tickets

question 36

Multiple Choice

The university police department must write, on average, five tickets per day to keep department revenues at budgeted levels. Suppose the number of tickets written per day follows a Poisson distribution with a mean of 8.5. Interpret the value of the mean.

• A) If we sampled all days, the arithmetic average number of tickets written would be 8.5 tickets per day.
• B) The mean has no interpretation since 0.5 ticket can never be written.
• C) The number of tickets that is written most often is 8.5 tickets per day.
• D) On half of the days less than 8.5 tickets are written and on half of the days have more than 8.5 tickets are written.

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Definitions:

Primarily Liable

Being directly responsible or obligated to satisfy a debt or legal obligation, especially before any other party.

Right To Reimbursement

The legal right of a party to be compensated for expenses they have incurred on behalf of another party.

Investor

A person or entity that allocates capital with the expectation of receiving financial returns.

Consideration

The value (such as money, services, or goods) that is promised in a contract to be exchanged to make the contract legally binding.