On Average Stoppages on the Assembly Line at Jamari Industries

question 94

Multiple Choice

On average stoppages on the assembly line at Jamari Industries have a Poisson distribution with a mean of .1 per hour.Use the Poisson probability function to determine the probability of having no stoppages in a 20 hour period.

• A).0986
• B).1025
• C).0878
• D).1226
• E).1353

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Definitions:

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, including expenses like rent, wages, and insurance premiums.

Operating Income

measures a company's profit after deducting operating expenses like wages and cost of goods sold, but before interest and taxes.

Unit Selling Price

The price for which a single unit of a product is sold, not including discounts or promotions.

Unit Variable Costs

Costs that vary directly with the level of production or output, unlike fixed costs, which remain constant regardless of production volume.