The Sutton Police Department Must Write,on Average,6 Tickets a Day

question 61

Multiple Choice

The Sutton police department must write,on average,6 tickets a day to keep department revenues at budgeted levels.Suppose the number of tickets written per day follows a Poisson distribution with a mean of 6.5 tickets per day.Interpret the value of the mean.

• A)The mean has no interpretation.
• B)The expected number of tickets written would be 6.5 per day.
• C)Half of the days have less than 6.5 tickets written and half of the days have more than 6.5 tickets written.
• D)The number of tickets that is written most often is 6.5 tickets per day.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how spread out the values are from the average.

Revenue Management

The strategic analysis and optimization of sales growth and profitability, particularly through pricing and inventory control.

Marginal Revenue

The extra revenue generated by the sale of an additional unit of a product or service.

Spot Market

A Spot Market is a public financial market in which financial instruments or commodities are traded for immediate delivery and payment.