A catalog 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 time was found to be a random variable best approximated by an exponential distribution with a mean equal to 3 minutes. What proportion of customers having to hold more than 4.5 minutes will hang up before placing an order?
A) 0.22313
B) 0.48658
C) 0.51342
D) 0.77687

Question

Quizplus · Accepted Answer

The proportion of customers having to hold more than 4.5 minutes is given by the exponential distribution function:P(X > 4.5) = e^(-4.5/3) = 0.22313

A Catalog Company That Receives the Majority of Its Orders