Estimate the probability that revenue will cover expenses

Assignment Help Mathematics

Reference no: EM131001333

1. The number of customers arriving at a restaurant is Poisson distributed with a mean of 15 per hour. The amount that each customer spends is exponentially distributed with an average of 20. The restaurant is open 16 hours each day and the daily expenses are 4500. Using a normal approximation, estimate the probability that on a given day, revenue will cover expenses.

2. Suppose that N is a continuous mixture of Poisson distributions where the mean is itself a random variable. Find P(N = 0) in each of the following cases.

(a) The mean is uniformly distributed on the interval [1, 3].

(b) The mean has a Gamma (2, 3) distribution.

Reference no: EM131001333

Questions Cloud

Find the probability that s equal to thirty : Suppose that N takes the values 0, 1, 2, 3 with probabilities 0.4, 0.3, 0.2, 0.1 respectively. Find the probability that S = 30. Find E[(S - 15)+], given that E(X) = 20.

What would be the firm''s new debt ratio : If Campbell were to purchase a nw warehouse for $1.2 million and finance it entirely with long-term debt, what would be the firm's new debt ratio?

Appropriate statistical description and summary of data set : Provide an appropriate statistical description and summary of this data set; comment on any distinctive characteristics and postulate potential explanations for your observation.

Summary on the target behavior in observable terms : Choose a target behavior for your Self-Management Project. Write a 175-word summary on the target behavior in observable and measurable terms

Estimate the probability that revenue will cover expenses : The restaurant is open 16 hours each day and the daily expenses are 4500. Using a normal approximation, estimate the probability that on a given day, revenue will cover expenses.

What would this disorder look like in person : Provide the following details about the disorder: What are some of the symptoms? What would this disorder look like in person? Make sure you relate this back to the DSM criteria

Possibility of predicting the boiling point of compounds : What does this data set imply about the possibility of predicting the boiling point of compounds in this series on the basis of the number of carbon atoms? Compute the correlation coefficient between these two variables, even though the number n i..

Discussion - somatoform and dissociative disorders : Somatoform and Dissociative Disorders - Discussion. Which side of the argument of repressed memories did you find to be the most compelling? Drawing on material from the course, choose one side of this debate and discuss why you feel that explanati..

Appropriate discount rate for this type of project : If you were the CEO, would you approve this proposal? Why or why not?

User Account

All Pages