Customers Arrive According to a Poisson Distribution

question 54

Multiple Choice

Customers arrive according to a Poisson distribution.The average number of customer arrivals per hour is two.The probability that five customers will arrive in the next three hours is:

• A)less than or equal to 0.10.
• B)greater than 0.10 but less than or equal to 0.12.
• C)greater than 0.12 but less than or equal to 0.14.
• D)greater than 0.14.

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Definitions:

Book Value

The value of an asset as recorded in the company's books or financial records, typically reflecting its original cost minus depreciation.

Accumulated Depreciation

Accumulated depreciation is the total depreciation expense that has been recorded for an asset over its life.

Lump-sum Price

This is a total amount agreed upon for a contract that is not itemized or broken down into individual costs or charges.

Relative Market Values

The comparison of an item’s market price to other similar items in the relevant market.