The Time Between Arrivals at an ATM Machine Follows an Exponential

question 120

Multiple Choice

The time between arrivals at an ATM machine follows an exponential distribution with θ = 10 minutes. Find the probability that between 15 and 25 minutes will pass between arrivals.

• A)0.082085
• B)0.305215
• C)0.223130
• D)0.141045

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Definitions:

Break-Even

The point where total expenses match total income, leading to neither a profit nor a loss.

Unit Variable Cost

The cost associated with producing one additional unit of product, including materials, labor, and other variable costs.

Fixed Costs

Overheads like rent, salaries, and insurance that stay the same, irrespective of how much is produced or sold.

Break-Even

The point at which total costs equal total revenues, resulting in no net loss or gain for a business.