The Number of 911 Calls in a Small City Has

question 25

Short Answer

The number of 911 calls in a small city has a Poisson distribution with a mean of 10.0 calls a day.The standard deviation of the number of 911 calls in a day is _____.

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Definitions:

Real Option

A choice made available to managers regarding investment opportunities, considering the flexibility to adapt to market changes.

Call

A contract that grants the holder the ability, though not the requirement, to purchase a certain quantity of an underlying asset at a predetermined price before a specified deadline.

Exercise Price

The set price at which an option's holder has the right to purchase (call) or sell (put) the underlying asset.

Stock Price

indicates the current price at which a share of a company can be bought or sold on a stock exchange.