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:

Equilibrium Value

A state in which market supply and demand balance each other, and, as a result, prices become stable.

Price Level

An index of the average prices of goods and services throughout an economy, often used to measure inflation.

Nominal GDP

The gross domestic product measured in current prices, without adjustment for inflation.

Classical Dichotomy

The theoretical separation of nominal and real variables in the economy, suggesting that changes in the money supply only affect nominal variables.