If an Exponential Distribution Has the Rate Parameter λ =

question 122

Multiple Choice

If an exponential distribution has the rate parameter λ = 5, what is its variance?

• A) 5
• B) 1/5
• C) 1/25
• D) 5/2

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Definitions:

Accounts Payable Period

The average number of days it takes for a business to pay its suppliers, indicative of the company's payment policies and cash flow management.

Quarterly Sales

The total revenue a company generates from its business activities during a specific three-month period of the fiscal year.

Purchase Price

The amount of money paid to acquire a product or service.

Accounts Payable Period

The average period it takes a company to pay its invoices from suppliers and vendors.