A Bank Offers Online Banking to Its Customers Free of Charge

question 84

Essay

A bank offers online banking to its customers free of charge. While online, customers can also sign up for additional services that the bank offers. Let $x$ be the number of customers who sign up for additional services online each day. Suppose the distribution of $x$ is approximated well by a Poisson distribution with mean $\lambda = 42.3$ . Find $E ( x )$ and interpret its value.

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Definitions:

Deductible

An amount that can be subtracted from an individual's or organization's taxable income, thereby reducing the amount of tax owed.

Tax Deductible

Refers to a qualifying expense that can reduce an entity's taxable income, and thereby reduce its tax liability.

Dividends

Sum of money distributed by a corporation to those holding its shares, originating from the firm's earnings allocated among its stockholders.

Expense

Costs incurred by a business in the process of earning revenues, typically classified as operating or non-operating expenses.