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:

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