An Automatic Car Wash with a Single Bay Takes a Constant

question 53

Multiple Choice

An automatic car wash with a single bay takes a constant 3 minutes to wash.The arrival rate is 10 cars per hour.Determine the average time a car spends in the system.The arrival rate of cars tends to follow a Poisson distribution.

• A)5 minutes
• B)6 minutes
• C)3.5 minutes
• D)4.5 minutes

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Definitions:

Forward Contract

A personalized deal between two counterparties to execute the sale or purchase of an asset at a set price on a future date agreed upon.

Fair Value

An estimate of the market value of an asset or liability; it is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Exchange Rates

The value of one currency for the purpose of conversion to another, determining how much one country's currency is worth in another country's currency.

Two-Transaction Perspective

An approach in accounting that views a transaction involving foreign currencies as two separate events: one for the initial transaction and another for the currency exchange.