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Customers enter the waiting line at 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,what is the average number of customers waiting in line behind the person being served?
Leveraged Firm
A company that uses borrowed funds or debt to finance its operations or acquisitions, aiming to increase potential returns to equity owners.
Standard Deviation
A measure of the dispersion or variation in a set of values, indicating how much the values deviate from the mean.
Zero-coupon Bonds
Bonds that do not pay periodic interest payments and are issued at a deep discount to their face value, with the face value repaid at maturity.
Put Option
A financial contract granting the holder the right to sell a specified amount of an underlying asset at a set price within a specified timeframe.
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