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 Sales

The amount of revenue required to cover both the fixed and variable costs of production, resulting in no net profit or loss.

Common Fixed Expenses

Expenses that remain constant regardless of the level of production or sales activities, such as rent, salaries, and insurance.

Operating Period

The span of time during which a business or a particular machinery is operational or in use.

Net Operating Income

Revenue from the primary business activities of a company, with no deductions for interest and taxes.