Exhibit 12.5 The Following Questions Use the Information Below

question 80

Multiple Choice

Exhibit 12.5
The following questions use the information below.
The owner of Sal's Italian Restaurant wants to study the growth of his business using simulation. He is interested in simulating the number of customers and the amount ordered by customers each month. He currently serves 1000 customers per month and feels this can vary uniformly between a decrease of as much as 5% and an increase of up to 9%. The bill for each customer is a normally distributed random variable with a mean of $20 and a standard deviation of $5. The average order has been increasing steadily over the years and the owner expects the mean order will increase by 2% per month. You have created the following spreadsheet to simulate the problem.
-What is the formula for P(t ≤ T) under the exponential distribution with rate μ?

• A) 1 − eμ^T
• B) eμ^T
• C) 1 − e−μ^T
• D) 1 − e^T

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Definitions:

Informational Power

A form of power stemming from the ability to control access to information and knowledge, which can influence others' actions and beliefs.

Legitimate Power

Power derived from a formal position or role in an organization, allowing one to influence others based on authority.

Expert Power

The ability to influence others based on the possession of knowledge, skills, or expertise that is recognized and valued.

Expectation-States Theory

A social theory that explains how individuals' expectations in a group setting influence the dynamics of status and influence within the group.