Due to Turnover and Promotion, a Bank Manager Knows That

question 26

Short Answer

Due to turnover and promotion, a bank manager knows that, on average, she hires four new tellers per year. Suppose the number of tellers she hires is Poisson distributed.
A) What is the probability that in a given year, the manager hires exactly five new tellers?
B) What is the average number of tellers the manager hires in a six-month period?
C) What is the probability that the manager hires at least one new teller in a given six-month period?

• A) What is the probability that in a given year, the manager hires exactly five new tellers?
• B) What is the average number of tellers the manager hires in a six-month period?
• C) What is the probability that the manager hires at least one new teller in a given six-month period?

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Definitions:

Stock Investments

Financial assets representing ownership in a corporation, giving the holder a share of the corporation's earnings and assets.

Equity Method

An accounting technique used by firms to assess the profits earned by their investments in other companies, by recognizing income in proportion to their ownership percentage.

Cash Dividends

The allocation of a part of a corporation's profits, determined by its board of directors, to a group of its stockholders as cash.

Comprehensive Income

Comprehensive income includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. It encompasses net income and other comprehensive income items.