If Arrivals Occur According to the Poisson Distribution Every 20

question 55

Multiple Choice

If arrivals occur according to the Poisson distribution every 20 minutes,then which is not true?

• A)  = 20 arrivals per hour
• B)  = 3 arrivals per hour
• C)  = 1/20 arrivals per minute
• D)  = 72 arrivals per day

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Definitions:

Socially Optimal Output

The level of production or output that is most beneficial for society as a whole, considering both production costs and externalities.

Market Price

Price prevailing in a competitive market.

Dynamic Inefficiencies

Inefficiencies that occur over time due to factors such as technological changes, market adjustments, or policy shifts, affecting long-term economic performance.

Pollution

Pollution refers to the introduction of harmful materials into the environment, including the air, water, and soil, which can damage the health of both the planet and its inhabitants.