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 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 proportion of callers is put on hold longer than 2.8 minutes?

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Answer: 0.3679

Step-by-step explanation:

The cumulative distribution function for exponential distribution is :-

[tex]P(x)=1-e^{-\lambda x}[/tex], where [tex]\lambda[/tex]  is the mean of the distribution.

Given :  A mean length of waiting time equal [tex] 2.8[/tex] minutes

i.e. Mean number of calls answered in a minute [tex]\lambda=\dfrac{1}{2.8}[/tex]

Now, the proportion of callers is put on hold longer than 2.8 minutes is given by :_

[tex]P(x>2.8)=1-P(x<2.8)\\\\=1-(1-e^{-\frac{1}{2.8}\times2.8})\\\\=1-1+e^{-1}\\\\=e^{-1}\\\\=0.367879441171\approx0.3679[/tex]

Hence, the proportion of callers is put on hold longer than 2.8 minutes = 0.3679

Using the exponential distribution, it is found that 0.3679 = 36.79% of callers is put on hold longer than 2.8 minutes.

Exponential distribution

The exponential probability distribution, with mean m, is described by the following equation:

[tex]f(x) = \mu e^{-\mu x}[/tex]

In which [tex]\mu = \frac{1}{m}[/tex] is the decay parameter.

The probability of finding a value higher than x is:

[tex]P(X > x) = 1 - P(X \leq x) = 1 - (1 - e^{-\mu x}) = e^{-\mu x}[/tex]

In this problem, the mean is of 2.8 minutes, hence:

[tex]m = 2.8, \mu = \frac{1}{2.8}[/tex]

The proportion that is put on hold longer than 2.8 minutes is given by:

[tex]P(X > 2.8) = e^{-\frac{1}{2.8} \times 2.8} = e^{-1} = 0.3679[/tex]

0.3679 = 36.79% of callers is put on hold longer than 2.8 minutes.

You can learn more about the exponential distribution at https://brainly.com/question/18596455