A Catalog Company That Receives the Majority of Its Orders

question 104

Multiple Choice

A catalog 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 random variable best approximated by an exponential distribution with a mean length of waiting time equal to 2.8 minutes (i.e. the mean number of calls answered in a minute is 1/2.8) . What proportion of callers is put on hold longer than 2.8 minutes?

• A) 0.3679
• B) 0.50
• C) 0.60810
• D) 0.6321

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Definitions:

Company

A corporate body set up by a team of people aimed at operating and handling a business operation, which might be focused on commerce or industry.

Working Capital

The difference between a company's current assets and current liabilities, indicating the available capital for day-to-day operations.

Company

A legal entity formed by a group of individuals to engage in and operate a business—commercial or industrial—enterprise.

Earnings Per Share

A financial metric that divides a company’s net income by the number of outstanding shares, indicating the profit earned per share of stock.