Business at the Kwik-E-Mart Is Brisk, with One Customer Arriving

question 47

Multiple Choice

Business at the Kwik-E-Mart is brisk, with one customer arriving at a rate of six per hour on average. Ringing up purchases is an easy matter for owner/operator Apu; he can usually do so in 2 minutes. If both arrival and service rates are Poisson distributed, how many customers are in the store on average?

• A)0.05
• B)0.16
• C)0.25
• D)0.50

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Definitions:

Bounded Rationality

A theory suggesting that decision-makers are limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make decisions.

Less Than Optimal

A condition or outcome that does not achieve the best possible performance or results.

Rational Decisions

Decisions made based on logical reasoning, taking into account all available information and potential outcomes.

Purely Additive

Describes a function or situation in which the total effect is exactly the sum of its individual components, without any interaction between them.