The Number of Calls to an Internet Service Provider During

question 91

True/False

The number of calls to an Internet service provider during the hour between 6:00 and 7:00 p.m. is described by a Poisson distribution with mean equal to 15. Given this information, the standard deviation for the call distribution is about 3.87 calls.

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Definitions:

Unit Selling Price

The price that a customer pays for one unit of a product or service.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, giving weight to some numbers more than others.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit.

Margin of Safety

The difference between actual or projected sales and the break-even point; it measures the amount by which sales can drop before reaching the break-even point.