Suppose That Customer Arrivals Are Governed by a Poisson Distribution

question 70

Essay

Suppose that customer arrivals are governed by a Poisson distribution. If the average arrival rate is 60 customers each hour, how many times will 60 customers arrive during a one hour period for each time that only 40 customers arrive.

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Definitions:

Operating Cycle

The period of time it takes for a company to purchase inventory, sell it to customers, and collect the cash from the sales.

Financial Resources

Financial resources are the funds available to a business or individual for spending, investment, and other purposes.

Accumulate

To gather or collect items over a period of time, often for a specific purpose or to achieve a particular goal.

Vest

To bestow a right, immediate or future, for the ownership of (an asset, typically a stock or option) to a worker under a plan, which may be subject to conditions.