When the Number of Arrivals Per Unit Time Follows a Poisson

question 18

Multiple Choice

When the number of arrivals per unit time follows a Poisson distribution, the most important implication is that ________.

• A) the arrivals are dependent and non-random
• B) the time between arrivals is exponentially distributed
• C) eventually the queue length will stabilize
• D) the rate of completion of service is also Poisson distributed

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Definitions:

Compounding Principle

The process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time.

Rate of Return

A percentage representing the gain or loss on an investment over a specified period, relative to its cost.

Statistically Significant

A determination that a result from data analysis is likely not due to chance at a predetermined level of significance.

Observation Period

The specific time frame over which data is collected or observations are made, often used in statistical analyses and studies.