The Number of Traffic Accidents Per Day on a Certain

question 122

Multiple Choice

The number of traffic accidents per day on a certain section of highway is thought to be Poisson distributed with a mean equal 2.19. Based on this, how many traffic accidents should be expected during a week long period?

• A) 15.33
• B) 10.95
• C) approximately 10.36
• D) approximately 12.21
• E) none of these

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Definitions:

Break-even Point

The level of sales or production at which total revenues equal total expenses, resulting in neither profit nor loss.

Fixed Costs

Costs that do not change with the level of output or sales, such as rent, salaries, or insurance premiums.

Cost-volume-profit Chart

A graphical representation that shows the relationships between an organization's costs, sales volume, and profits, used for making strategic business decisions.

Total Fixed Cost

The sum of all costs required to produce any goods or services that do not change with the level of production.