A Catalog Company That Receives the Majority of Its Orders

question 105

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 is the probability that a randomly selected caller is placed on hold fewer than 7 minutes?

• A) 0.0009119
• B) 0.082085
• C) 0.917915
• D) 0.9990881

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Definitions:

Financial Consultants

Professionals who offer expert advice on money management, investments, and financial planning.

Conditional Probability

Conditional probability is the probability of an event occurring given that another event has already occurred.

Independent Events

Two events are considered independent if the occurrence of one does not affect the probability of occurrence of the other.

Simultaneously

Occurring, operating, or done at the same time; often used in statistical contexts to describe events or processes that happen concurrently.