A Local Fire Station Receives an Average of 0

question 36

Multiple Choice

A local fire station receives an average of 0.55 rescue calls per day. Use the Poisson distribution to find the probability that on a randomly selected day, the fire station will receive fewer than two calls.

• A)0.894
• B)0.106
• C)0.317
• D)0.087

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Definitions:

Implicit Costs

The opportunity costs of using resources owned by the firm for its project instead of selling or renting them to others.

Fixed Costs

Costs that do not vary with the level of production or output, such as rent, salaries, and insurance.

Variable Costs

Variable costs are expenses that change in proportion to the level of production or business activity.

Average Fixed Costs

The total fixed costs of production divided by the number of units produced, representing the fixed cost per unit of output.