During Normal Business Hours at a Gas Station,customers Arrive,on Average,every

question 146

Essay

During normal business hours at a gas station,customers arrive,on average,every ten minutes.Assume that the distribution of the time between arrivals follows an exponential distribution.Suppose that a customer has just left the gas station.What is the probability that the cashier at the gas station has more than 15 minutes before the next customer arrive?

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Definitions:

Semiannual Interest

Interest that is calculated and paid twice a year, often associated with bonds or loans.

Effective Rate

The actual interest rate that a borrower pays or earns, taking into account the compounding of interest.

Contract Rate

The pre-agreed interest rate specified in a financial contract or loan agreement.

Bond Premium

The additional amount over the face value for which a bond is sold, representing the difference between its selling price and its face value.