Students Arrive Randomly at the Help Desk of the Computer

question 12

Multiple Choice

Students arrive randomly at the help desk of the computer lab. There is only one service agent, and the time required for inquiry varies from student to student. Arrival rates have been found to follow the Poisson distribution, and the service times follow the negative exponential distribution. The average arrival rate is 10 students per hour, and the average service rate is 20 students per hour. A student has just entered the system. How long is she expected to stay in the system?

• A) 0.1 minute
• B) 3.0 minutes
• C) 1.5 minutes
• D) 7.5 minutes
• E) 6.0 minutes

---

Definitions:

Deferred Revenue

Income received by a company for goods or services yet to be delivered or performed; it is recorded as a liability on the balance sheet until the transaction is completed.

Accrued Revenue

Revenue that has been earned but not yet received or recorded at the end of an accounting period.

Adjusting

The process of making entries to update internal accounts for events that have transpired but are not yet recorded at the end of an accounting period.

Cash Basis

An accounting method where revenues are recognized when cash is received, and expenses are recorded when cash is paid out.