Checkout Times in a Walmart Store Follow an Exponential Distribution

question 136

Multiple Choice

Checkout times in a Walmart store follow an exponential distribution with a mean time of 8 minutes.What is the probability that the checkout time for the next customer will be 6 minutes or less?

• A)0.528
• B)0.472
• C)0.972
• D)0.328

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Definitions:

Allocative Efficiency

A state in which resources are allocated in a way that maximizes the net benefit to society or achieves the desired distribution among competing uses.

Productive Efficiency

Productive efficiency occurs when an economy or entity produces goods and services at the lowest possible cost, utilizing all available resources without waste.

MB = MC

The principle that optimal decision-making is achieved when the marginal benefit equals the marginal cost.

Unintended Consequences

Outcomes of a policy or action that were not foreseen or intended, often contrary to the original objectives.