Due to Turnover and Promotion, a Bank Manager Knows That

question 26

Short Answer

Due to turnover and promotion, a bank manager knows that, on average, she hires four new tellers per year. Suppose the number of tellers she hires is Poisson distributed.
A) What is the probability that in a given year, the manager hires exactly five new tellers?
B) What is the average number of tellers the manager hires in a six-month period?
C) What is the probability that the manager hires at least one new teller in a given six-month period?

• A) What is the probability that in a given year, the manager hires exactly five new tellers?
• B) What is the average number of tellers the manager hires in a six-month period?
• C) What is the probability that the manager hires at least one new teller in a given six-month period?

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Definitions:

Economies of Scale

Cost benefits that companies achieve because of their large scale of operations, generally resulting in a lower cost per output unit as the scale increases.

Per-Unit Costs

The average cost for each individual unit of product produced, taking into account all fixed and variable expenses.

Marginal Costs

The incremental cost involved in producing one more unit of a product or service.

Learning Curve

The concept that people improve efficiency and decrease cost over time as they gain experience in a particular task or operation.