Consider a Poisson Distribution with an Average of 3 Customers

question 3

Multiple Choice

Consider a Poisson distribution with an average of 3 customers per minute at the local grocery store: Consider a Poisson distribution with an average of 3 customers per minute at the local grocery store.If X = the number of arrivals per minute,find the standard deviation of X.

• A)3
• B)9
• C)1.5
• D)1.7

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Definitions:

Fixed Costs

Expenses that remain constant regardless of the amount of goods produced or sold, including lease payments, wages, and coverage fees.

Transportation Costs

Costs incurred during the transportation of items or resources from one place to another.

Cost Leadership

A strategy focusing on gaining competitive advantage by being the lowest cost producer in an industry while maintaining acceptable quality levels.

Manufacturing Facilities

Physical locations equipped with machinery and labor, where raw materials are transformed into finished products.