A company that receives the majority of its orders by telephone conducted a study to determine how long customers were willing to wait on hold before ordering a product. The length of waiting
Time was found to be a variable best approximated by an exponential distribution with a mean
Length of waiting time equal to 2.8 minutes (i.e. the mean number of calls answered in a minute is
1/2)8). What is the probability that a randomly selected caller is placed on hold fewer than 7
Minutes?
A) 0.0009119
B) 0.082085
C) 0.917915
D) 0.9990881

Question

Quizplus · Accepted Answer

The exponential distribution with a mean of 2.8 minutes has a rate parameter λ = 1/2.8. The probability that a caller waits less than 7 minutes is given by the cumulative distribution function: P(X < 7) = 1 - e^(-λ*7). Calculating this gives approximately 0.917915.

A Company That Receives the Majority of Its Orders by Telephone