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Public Policy and Political Science
The Weekly Standard is a politically conservative magazine (and website), described in ads as humorous and witty. This magazine is read by some of the most powerful men and women in government, politics, and the media. According to a survey conducted by magazine staff, the mean amount spent during the past 12 months for personal or vacation travel is $6159. Suppose the distribution of the amount spent by a subscriber during the past 12 months for personal or vacation travel can be modeled by an exponential random variable.
a. Find the value of λ.
b. Find the probability that a randomly selected subscriber spent more than $8000 for personal or vacation travel during the past 12 months.
c. Find the probability that a randomly selected subscriber spent between $5000 and $10,000 for personal or vacation travel during the past 12 months.
d. If a subscriber spent less than $500 for personal or vacation travel during the past 12 months, the circulation department will no longer hand-deliver each issue. What is the probability that a randomly selected subscriber will no longer receive hand-delivered issues?
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