Customers Arrive at Drive-Thru Window at the Local Fast Food

question 74

Multiple Choice

Customers arrive at drive-thru window at the local fast food place at an average rate of 12 per hour, following a Poisson distribution. The server at the window can service an average of 3 cars every 12 minutes with service times described by an exponential distribution. The manager asks you to help him figure out the following:

• A) average utilization
• B) average time a customer spends in line waiting to enter the drive-thru bay
• C) average number of customers waiting in line
• D) probability of having more than 4 cars in the system

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Definitions:

Tax Deductible

Refers to expenses that can be subtracted from gross income to determine taxable income, thereby reducing the overall tax liability.

Interest Expense

The cost incurred by an entity for borrowed funds, including loans, bonds, or lines of credit.

Debt-to-Equity Ratio

It's a ratio that signifies the proportional use of debt and shareholders' equity in the acquisition of company assets.

Total Liabilities

The sum of all financial obligations (debts and other liabilities) that a company owes to outside parties.