A Car Wash Is Trying to Determine How Long the Average

question 113

Multiple Choice

A car wash is trying to determine how long the average line for a wash will be. The probability distributions that describe arrival and service times are unknown. If 10 cars arrive each hour and must wait 12 minutes in the line, how long will the line be, on average?

• A) 120 cars
• B) 2 cars
• C) 1 car
• D) 0.83 cars
• E) 5 cars

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Definitions:

Labor-Intensive

A process or industry that requires a large amount of labor relative to capital in its production processes.

Production Techniques

Methods or processes used in the transformation of inputs into outputs in the production of goods or services.

Elastic

In economics, the term "elastic" refers to the responsiveness of the quantity demanded or supplied of a good to a change in its price. High elasticity means the quantity demanded or supplied changes significantly with price changes.

Imperfectly Competitive Market

A market structure where individual firms have some control over the price of their products due to factors like product differentiation or few competitors.