During Off Hours, Cars Arrive at a Highway Service Station

question 93

Essay

During off hours, cars arrive at a highway service station at an average rate of 0.5 cars per minute. The arrivals are distributed according to the Poisson distribution.
-What is the probability that during the next five minutes three cars will arrive?

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Definitions:

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, resulting in decreased costs per unit.

Perfect Competition

A market structure characterized by many buyers and sellers, homogenous products, no barriers to entry, and perfect information.

Pure Monopoly

A market structure where a single seller controls the entire market for a particular product or service, facing no competition.

Economic Efficiency

A state where every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.