Consider a Poisson Distribution with an Average of 3 Customers

question 11

Multiple Choice

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 expected value of X.

• A)3
• B)9
• C)1.5
• D)1.7

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Definitions:

Compounded Quarterly

The process of calculating interest on both the initial principal and the accumulated interest over three-month intervals.

Interest Rate

The percentage at which interest is calculated on the principal of a loan or deposit over a specific period of time.

Payments

The act of transferring money or something of value from one party to another in exchange for goods, services, or to fulfill a legal obligation.

Borrowed

Refers to funds that have been taken from another party under the agreement that they will be repaid at a later date, often with interest.