Let X Represent the Amount of Time It Takes a Student

question 36

Multiple Choice

Let X represent the amount of time it takes a student to park in the car park at the university.If we know that the distribution of parking times can be modelled using an exponential distribution with a mean of 4 minutes,find the probability that it will take a randomly selected student more than 10 minutes to park in the car park.

• A) 0.329680
• B) 0.670320
• C) 0.917915
• D) 0.082085

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Definitions:

Discount on Bonds Payable

The gap between a bond's face value and its market selling price, occurring when the bond sells below its nominal value.

Straight-Line Amortization

A method of reducing the carrying amount of an intangible asset over its useful life in equal amounts.

Bond Discount

The difference between the face value of a bond and the price for which it sells, when the bond's market price is lower than its face value.

Straight-Line Method

A depreciation technique that allocates an equal amount of depreciation each year over the useful life of the asset.