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

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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?


Definitions:

Surety Financing Company

A surety financing company provides financial guarantees for obligations made by the principal, ensuring contract completion in the event of default.

Discounted

A reduction applied to the regular price of products or services, often used as an incentive for customers.

Maturity Value

The amount payable to the holder of a financial instrument at its maturity date, including principal and any accrued interest.

365-Day Year

A calendar assumption that treats each year as having 365 days for calculating interests or other daily based computations.

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