A Company That Receives the Majority of Its Orders by Telephone

question 401

Multiple Choice

A company that receives the majority of its orders by telephone conducted a study to determine how long customers were willing to wait on hold before ordering a product. The length of waiting
Time was found to be a variable best approximated by an exponential distribution with a mean
Length of waiting time equal to 3 minutes (i.e. the mean number of calls answered in a minute is
1/3) . What proportion of customers having to hold more than 1.5 minutes will hang up before
Placing an order?

• A) 0.86466
• B) 0.60653
• C) 0.39347
• D) 0.13534

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Definitions:

Causal Relationship

indicates a situation where one variable directly affects another variable, implying causation rather than just correlation.

Statistical Accuracy

The degree to which statistical estimates reflect the true value of the parameter being measured.

Alternative Hypothesis

A hypothesis that proposes a relationship between variables, countering the null hypothesis that suggests no such relationship exists.

Statistical Tests

Procedures in statistics used to make inferences or decisions based on data subject to random variation.