An Automatic Car Wash with a Single Bay Takes a Constant

question 8

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 number of cars waiting in line for the car wash.The arrival rate of cars tends to follow a Poisson distribution.

• A)0.25 cars
• B)0.5 cars
• C)1 car
• D)1.5 cars

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Definitions:

Competitive Market

A marketplace where numerous competitors vie to sell their goods or services, ensuring no single participant can control the market dynamics.

Shut Down

A situation where a business ceases operations—temporarily or permanently—due to various reasons such as financial troubles or market conditions.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Variable Costs

Costs of production that vary with the level of output, such as raw materials and labor expenses.