On the Average,1

question 126

Multiple Choice

On the average,1.8 customers per minute arrive at any one of the checkout counters of a grocery store.What type of probability distribution can be used to find out the probability that there will be no customer arriving at a checkout counter?

• A)binomial distribution.
• B)Poisson distribution.
• C)hypergeometric distribution.
• D)none of the above.

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Definitions:

Variable Components

Parts of a cost or expense that change in proportion with changes in the level of business activity or production volume.

Fixed Components

The elements of a business's costs that remain constant regardless of the level of production or sales activity.

Contribution Margin

The amount by which sales income exceeds variable expenses, which is utilized to pay off fixed expenses and create profit.

Variable Costs

Expenses that vary in direct proportion to changes in production or sales volume, such as raw materials and direct labor costs.