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A Dry Cleaner Has a Single Drive-Thru Window for Customers

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A dry cleaner has a single drive-thru window for customers.The arrival rate of cars follows a Poisson distribution, while the service time follows an exponential distribution.The average arrival rate is 16 per hour and the average service time is three minutes.If the dry cleaner wants to accommodate (have enough room for)all of the waiting cars at least 96 percent of the time, how many car-lengths should they make the driveway leading to the window?


Definitions:

Dividend Payout Ratio

A financial metric that calculates the percentage of net income distributed to shareholders in the form of dividends.

Total Stockholders' Equity

The total net worth of a company according to its balance sheet, calculated as total assets minus total liabilities.

Common Stock

A type of equity security representing ownership in a corporation, with holders typically having voting rights and receiving dividends.

Dividend Yield Ratio

A financial ratio that indicates how much a company pays out in dividends each year relative to its stock price.

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