A Small Diner Has One Employee and a Counter with Seating

question 40

Multiple Choice

A small diner has one employee and a counter with seating for 8 customers. The diner does not package food for takeout. Customers arrive at the diner at the rate of 20 per hour (Poisson distributed) . Service times are exponentially distributed and average 24 per hour. Customers that arrive when all seats are taken do not enter the diner. What is the probability that there are no customers in the diner?

• A) 0.2068
• B) 0.7933
• C) 0.8333
• D) 0.1667

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Definitions:

Surplus

The situation in which the quantity of a product supplied exceeds the quantity demanded at a given price; excess supply.

Equilibrium Price

The market price at which the quantity of a good supplied is equal to the quantity demanded.

Bushels Demanded

The quantity of a commodity, measured in bushels, that consumers are willing to purchase at a given price.

Bushels Supplied

A measurement reflecting the quantity of a commodity, like grain, provided for sale at a given time.