Exhibit 12-6 The Owner of a Car Wash Wants to See If

question 49

Multiple Choice

Exhibit 12-6
The owner of a car wash wants to see if the arrival rate of cars follows a Poisson distribution. In order to test the assumption of a Poisson distribution, a random sample of 150 ten-minute intervals was taken. You are given the following observed frequencies:
-Refer to Exhibit 12-6. At 95% confidence, the conclusion of the test is that the

• A)arrival of cars follows a Poisson distribution
• B)arrival of cars does not follow a Poisson distribution
• C)test is inconclusive
• D)None of these alternatives is correct.

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Definitions:

Average Total Assets

The mean amount of all assets a company owns, calculated over a specific period of time, used to assess company performance and efficiency.

Asset Turnover

An efficiency ratio that gauges a company's capability to use its assets for producing sales earnings.

Additions to Land

Expenditures made to increase the value of land, which can include costs for landscaping, site improvement, or acquiring adjacent land.

Parking Lots

Designated areas where vehicles can be parked temporarily. These can be commercial ventures or part of public infrastructure.