Consider an Espresso Stand with a Single Barista

question 70

Multiple Choice

Consider an espresso stand with a single barista.Customers arrive to the stand at the rate of 28 per hour according to a Poisson distribution.Service times are exponentially distributed with a service rate of 35 customers per hour.The probability that there are more than 2 customers in the system is

• A)0.128
• B)0.488
• C)0.512
• D)0.640

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Definitions:

Total Profits

The financial gain obtained after subtracting total costs from total revenue over a period.

Marginal Revenue

The boost in income resulting from the sale of one more unit of a product or service.

Market Price

The existing value at which an asset or service might be acquired or disposed of on the open market.

Marginal Revenue

The incremental revenue procured by selling an extra unit of a product or service.