Exhibit 5-15

question 111

Multiple Choice

Exhibit 5-15.A bank manager estimates that an average of two customers enter the tellers' queue every five minutes.Assume that the number of customers that enter the tellers' queue is Poisson-distributed. Refer to Exhibit 5-15.What is the probability that exactly seven customers enter the queue in a randomly selected 15-minute period?

• A)0.0034
• B)0.1033
• C)0.1377
• D)0.1606

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Definitions:

Elastic

Describes a situation where the quantity demanded or supplied changes significantly when the price changes.

Marginal Revenue

The additional income received from selling one more unit of a good or service.

Marginal Cost

The additional cost incurred from producing one more unit of a good or service.

Profit Maximizes

The process or strategy of adjusting production and operations to achieve the highest possible profit.