Customers Arrive at a Store Randomly, Following a Poisson Distribution

question 41

Short Answer

Customers arrive at a store randomly, following a Poisson distribution at an average rate of 90 per hour. How many customers would you expect to arrive in a 20 minute period?

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Definitions:

Present Value Method

A financial calculation that determines the current worth of a future stream of cash flows, discounted at a specific rate.

Estimated Average

A calculation that aims to determine the central or typical value of a data set or projection.

Average Rate

A calculation representing the central or typical value in a set of rates, or a fixed rate determined as an average from several rates.

Capital Investment

Funds spent by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.