THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING

question 245

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING:
Suppose you know that the number of complaints coming into a phone center averages 4.2 every ten minutes.Assume that the number of calls follows the Poisson distribution.
-What is the probability that there are exactly four calls during the next ten minutes?

• A)0.194
• B)0.172
• C)0.156
• D)0.134

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Definitions:

Expected Return

The anticipated gain or loss from an investment over a period, considering both the probability of outcomes and the impact of different outcomes.

Portfolio

A collection of financial investments, such as stocks, bonds, commodities, or real estate, held by an individual or institution.

Slope of the Budget Line

The rate at which a consumer can trade off one good for another while maintaining the same level of utility, representing the relative prices of two goods.

Risk

The possibility of loss, damage, or any other undesirable event.