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:

Multifactor APT

A model that describes the return of a security or portfolio in relation to various risk factors and the expected return on the assets, extending the concepts of the Capital Asset Pricing Model (CAPM).

Expected Return

The average of all possible returns for an investment, weighted by the likelihood of each outcome, representing the mean of the probability distribution of returns.

APT

The Arbitrage Pricing Theory, an asset pricing model that predicts a security's returns using the linear relationship of its expected return with macroeconomic factors.

Developed

Refers to countries or regions with advanced economic systems, typically characterized by high gross domestic product (GDP) and well-developed infrastructure.