Customers Enter the Waiting Line to Pay for Food as They

question 122

Multiple Choice

Customers enter the waiting line to pay for food as they leave a cafeteria on a first-come, first-served basis.The arrival rate follows a Poisson distribution, while service times follow an exponential distribution.If the average number of arrivals is four per minute and the average service rate of a single server is seven per minute, on average, how much time will elapse from the time a customer enters the line until he/she leaves the cafeteria?

• A)0.67 minute
• B)0.50 minute
• C)0.75 minute
• D)0.33 minute

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Definitions:

Outward Shift

A movement of the supply or demand curve to the right, indicating an increase in supply or demand.

Resources Efficiently

The effective and optimal usage of resources to maximize productivity and minimize waste.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing to undertake an action.

Production Possibility Frontier

This graph illustrates the maximum outputs for two different goods achievable with certain inputs and existing production technology.