Let X Represent the Amount of Time Till the Next

question 22

Multiple Choice

Let X represent the amount of time till the next student will arrive in the library parking lot at the university.If we know that the distribution of arrival time can be modeled using an exponential distribution with a mean of 4 minutes (i.e.the mean number of arrivals is 1/4 per minute) ,find the probability that it will take between 2 and 12 minutes for the next student to arrive at the library parking lot.

• A)0.049787
• B)0.556744
• C)0.606531
• D)0.656318

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Definitions:

Fixed Cost

Expenses that remain constant regardless of production or sales volume, including rent, salaries, and insurance premiums.

High-Low Method

A cost-accounting method used to estimate variable and fixed costs based on the highest and lowest levels of activity.

Estimate

An approximation or educated guess regarding the value, quantity, or extent of something, often used for budgeting and planning processes.

High-Low Method

A way to estimate the fixed and variable components of a cost by analyzing the highest and lowest activity levels and their associated costs.