THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING

question 56

Essay

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING:
The number of people arriving at a bicycle repair shop follows a Poisson distribution with an average of 5 arrivals per hour.Let X represent the number of people arriving per hour.
-What is the probability that seven people arrive at the bike repair shop in a one hour period of time?

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Definitions:

Value Engineering

An organized approach to enhance the value of goods or products and services through a detailed analysis of their functions.

Non-value-added

Activities or processes that do not add value to the product or service from the customer's perspective, leading to unnecessary costs or inefficiencies.

Target Cost

A cost-management strategy in which a product’s selling price and desired profit are used to determine the allowable cost to manufacture it, with the aim of ensuring competitiveness and profitability.

Cost Driver Analysis

The examination of the factors that affect costs, aiming to understand the relationship between actions or volumes and their impact on expenses.