If Arrivals Occur According to the Poisson Distribution Every 20

question 56

Multiple Choice

If arrivals occur according to the Poisson distribution every 20 minutes,then which of the following is NOT true?

• A)λ = 20 arrivals per hour
• B)λ = 3 arrivals per hour
• C)λ = 1/20 arrivals per minute
• D)λ = 72 arrivals per day

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Definitions:

Midpoint Method

A technique used in economics to calculate the percentage change between two values, averaging the initial and final values to estimate elasticity.

Normal Good

A good for which demand increases as the income of the consumer increases, holding all else constant.

Production Capacity

The maximum output that a business can produce in a given period under normal conditions.

Supply

The total amount of a product or service that is available to consumers in the market.