The Probability Distribution for the Number of Automobiles Lined Up

question 61

Multiple Choice

The probability distribution for the number of automobiles lined up at a Lakeside Olds at opening time (7:30 a.m.) for service is: On a typical day, how many automobiles should Lakeside Olds expect to be lined up at opening time?

• A)10.00
• B)1.00
• C)2.85
• D)1.96

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Definitions:

Excess Capacity

A situation where a firm is producing at a lower scale of output than it has been designed for, often leading to inefficiencies.

Underallocation

The insufficient provision of resources to areas where they can be most efficiently or effectively used, often leading to inefficiencies.

Product Variety

The assortment or range of different products that a seller offers, catering to diverse customer preferences and enhancing market competitiveness.

Pure Competition

A market structure characterized by a large number of small firms, a homogeneous product, and easy market entry and exit.