The Exponential Distribution

The exponential
distribution has a
number of useful
applications. For
example, we can use it
to describe arrivals at a
car wash or the time it
takes to load a truck.

The Exponential Distribution

Density
function

1 x /
f ( x) e
for x 0, 0

= mean
e = 2.71828

The Exponential Distribution

Cumulative probabilities

P ( x x0 ) 1 e

x0 /

Where x0 is some specific value of x

Example: Als Full-Service Pump

The time between arrivals of
cars at Als full-service gas
pump follows an exponential
probability distribution
with a mean time between
arrivals of 3 minutes. Al would
like to know the probability that
the time between two
successive arrivals will be 2
minutes or less.

Example: Als Full-Service Pump

Exponential Distribution
f(x)
.4

-2/3 = 1 - .5134 =
PP((xx <
.48
< 2)
2) =
=1
1 -- 2.71828
2.71828-2/3
= 1 - .5134 = .486
.48

.3
.2
.1
1

x
9 10

Time Between Successive Arrivals (mins.)

Using Excel to Compute

Exponential Probabilities
The
The EXPONDIST
EXPONDIST function
function can
can be
be used
used to
to compute
compute
exponential
exponential probabilities.
probabilities.
The
The EXPONDIST
EXPONDIST function
function has
has three
three arguments
arguments::
st
1st

The value of the random variable x

nd
2nd
1/
rd
3rd

the inverse of the

mean
TRUE or FALSE number of
occurrences
we will always enter in an interval
TRUE because were
seeking a cumulative
probability

Using Excel to Compute

Exponential Probabilities

Formula Worksheet
1
2
3
4

A
B
Probabilities: Exponential Distribution
P (x < 2)

=EXPONDIST(2,1/3,TRUE)

Using Excel to Compute

Exponential Probabilities

Value Worksheet
1
2
3
4

A
B
Probabilities: Exponential Distribution
P (x < 2)

0.4866

Relationship between the Poisson

and Exponential Distributions
The Poisson distribution
provides an appropriate description
of the number of occurrences
per interval

The exponential distribution

provides an appropriate description
of the length of the interval
between occurrences

Exercise 27, p. 266

(a)
(b)
(c)

P( x x0 ) 1 e x0 / 3
P( x 2) 1 e 2 / 3 1 .5134 .4866

P ( x 3) 1 (1 e 3 / 3 )
1 (1 .3679) .3679

Exercise 27, p. 266: Continued

(d)

(e)

P( x 5) 1 e 5 / 3 1 .1882 .8117
P (2 x 5) (1 e 5 / 3 ) (1 e 2 / 3 )
.8117 (1 .5124) .3241