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Past exam of the options I course of the University of Oxford / 2013 / M / 1 / b / Solution

Codex (@codex,  0) ... Options I course of the University of Oxford Past exam of the options I course of the University of Oxford 2013 M 1 b
2026-10-31  0 By others on same topic  0 Discussions Create my own version
The first arrival time T1​, measured in hours after opening, has exponential distribution of rate twelve. Therefore
P(1/4<T1​<1/2)=e−12/4−e−12/2=e−3−e−6.​
(1)
Equivalently, there must be no arrivals in the first quarter hour and at least one in the next; independent increments give e−3(1−e−3).

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