Telephone Calls Arrive at the Global Airline Reservation Office in Louisville

question 120

Short Answer

Telephone calls arrive at the Global Airline reservation office in Louisville according to a Poisson distribution with a mean of 1.2 calls per minute.
a. What is the probability of receiving exactly one call during a one-minute interval?
b. What is the probability of receiving at most 2 calls during a one-minute interval?
c. What is the probability of receiving at least two calls during a one-minute interval?
d. What is the probability of receiving exactly 4 calls during a five-minute interval?
e. What is the probability that at most 2 minutes elapse between one call and the next?

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Definitions:

Maximum Possible Loss

The worst-case scenario loss that an investment or portfolio could suffer during a specified period.

Short 100 Shares

The action of selling 100 shares of stock that one does not own, betting that the stock's price will decline and it can be repurchased at a lower price for a profit.

Market Price

The current price at which an asset or service can be bought or sold in the market.

Short Transactions

Financial activities where securities are borrowed and sold with the expectation to buy them back at a lower price for a profit, betting on declining market prices.