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Suppose that customers arrive at a drive-through window at an average rate of three customers per minute and that their arrival follows the Poisson model.
a. Write the probability density function of the distribution of the time that will elapse before the next customer arrives.
b. Use the appropriate exponential distribution to find the probability that the next customer will arrive within 1.5 minutes.
c. Use the appropriate exponential distribution to find the probability that the next customer will not arrive within the next 2 minutes.
d. Use the appropriate Poisson distribution to answer part (c).
Equity Method
An accounting technique used by a company to record its investment in another company when it has significant influence but not full control over that company.
Net Income
The total profit of a company after all expenses, including taxes and costs, have been deducted from total revenue.
Equity Method
The equity method is an accounting technique used to assess the investments in other companies, where the investment is recorded at original cost and adjusted according to the investor’s share of the investee's profit or loss.
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