If Arrivals Occur at a Mean Rate of 3

question 68

Multiple Choice

If arrivals occur at a mean rate of 3.6 events per hour,the exponential probability of waiting less than 0.5 hour for the next arrival is

• A)0.7122
• B)0.8105
• C)0.8347
• D)0.7809

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Definitions:

Cash Flows

The total incoming and outgoing monetary flow in a commerce, influencing its immediate financial capabilities.

Annuity Stream

A series of fixed payments made at equal intervals over a specified period of time.

IRR Rate

The Discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero, used to assess the profitability of investments.

Time Value Of Money

The concept that money available in the present is worth more than the same amount in the future due to its earning capacity.