Exhibit 12-1 A Grocery Store Manager Would Like to Use an Analytical

question 28

Essay

Exhibit 12-1
A grocery store manager would like to use an analytical queueing model to study the lines of customers that form in front of the checkout stations in the store. During a period of time when business is steady, several store employees have gathered data on customer interarrival times, which are shown below.

-[Part 3] Refer to Exhibit 12-1.Again assuming an exponential distribution with the parameter λ you obtained in Part 2,what is the probability that a customer interarrival time will be more than 2 minutes,but less than 5 minutes

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Definitions:

Nonneutral Taxes

Taxes that affect economic choices, potentially leading to inefficiencies or changes in market behavior, unlike neutral taxes which do not alter decision-making.

Externalities

Effects of a production or consumption activity on other parties not directly involved in the transaction, which may be either positive or negative.

Neutral Taxes

Taxes that do not affect the allocation of resources between different goods or activities in the economy.

Excess Burdens

The economic inefficiencies or losses that result from imposing taxes or government policies.