A Telemarketer Knows That, on Average, He Is Able to Make

question 20

Essay

A telemarketer knows that, on average, he is able to make three sales in a 30-minute period. Suppose the number of sales he can make in a given time period is Poisson distributed.
A) What is the probability that he makes exactly four sales in a 30-minute period?
B) What is the probability that he makes at least two sales in a 30-minute period?
C) What is the probability that he makes five sales in an hour-long period?

• A) What is the probability that he makes exactly four sales in a 30-minute period?
• B) What is the probability that he makes at least two sales in a 30-minute period?
• C) What is the probability that he makes five sales in an hour-long period?

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Definitions:

Price-inelastic

Price-inelastic describes a situation where the demand for a product or service is relatively unresponsive to changes in its price.

Linear Demand Curve

A graphical representation showing a straight-line relationship between the quantity demanded of a good and its price.

Price Elasticity

A measure of the sensitivity of demand for a product in response to a change in its price.

Perfectly Elastic Demand

The case in which any price increase will cause the quantity demanded to drop to zero; the demand curve is a horizontal line.