What Is the Expected Number of Phone Calls Per Hour

question 2

Essay

What is the expected number of phone calls per hour based on the following distribution on the number of phone calls per hour?
$\begin{array}{lllll}&\text {A}&\text {B}&\text {C}&\text {D}\\&\text {\# of phone calls } & \text { P\# of phone calls)}&\text { \# of phone calls}&\text { P\# of phone calls) }\\1\\\hline2 & 1 & 0.10 & 1 & 0.10 \\3 & 2 & 0.40 & 2 & 0.50 \\4 & 3 & 0.30 & 3 & 0.80 \\5 & 4 & 0.15 & 4 & 0.95 \\6 & 5 & 0.05 & 5 & 1.00\end{array}$

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Definitions:

Diminishing Returns

A decrease in the marginal output of a production process as the amount of a single factor of production is incrementally increased, holding all other factors constant.

Value Added

The amount by which the value of goods or services is increased at each stage of its production, exclusive of initial costs.

Marginal Product

The increase in output resulting from a one-unit increase in the amount of a single input, holding all other inputs constant.

Equilibrium Value

The price or point at which the quantity of a product demanded equals the quantity supplied, leading to market stability.