The exponential distribution can be used to solve Poisson-type problems in which the intervals are not time.

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The exponential distribution can be used to solve Poisson-type problems in which the intervals are not time. According to SITA, the Geneva-based organization that provides World Tracer and other logistical technology to the air transport industry, 26.04-million checked bags were damaged, delayed, or lost in a recent year. That translates into 8.83 bags per 1,000 passengers. Assume mishandled baggage occurrences are Poisson distributed. Using the exponential distribution to analyze this problem, determine the average number of passengers between occurrences. Suppose baggage has just been mishandled. What is the probability that at least 500 passengers will have their baggage handled properly before the next mishandling occurs? What is the probability that the number will be fewer than 200 passengers?

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Business Statistics For Contemporary Decision Making

ISBN: 9781119577621

3rd Canadian Edition

Authors: Ken Black, Ignacio Castillo

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