Consider an Espresso Stand with a Single Barsita

question 31

Multiple Choice

Consider an espresso stand with a single barsita.Customers arrive to the stand at the rate of 28 per hour according to a Poisson distribution.Service times are exponentially distributed with a service rate of 35 customers per minute.If the arrival rate remains at 28 customers per hour and the stand's manager wants to have the average time a customer spends in the system i.e. ,wait time line and service time) to be a maximum of 6 minutes on average,then the service rate must

• A)decrease by 2 to 33 customers per hour
• B)decrease by 3 to 32 customers per hour
• C)increase by 3 to 38 customers per hour
• D)increase by 2 to 37 customers per hour

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Definitions:

Sales Returns and Allowances

Transactions where customers return goods or receive discounts due to issues, reducing total sales revenue.

Contra-Revenue Accounts

Accounts that are used to record reductions in gross revenue, such as sales returns and allowances, and discounts.

Sales Discount

A reduction in price given by a seller to a buyer, often to encourage prompt payment.

Sales Tax Payable

A liability account used to keep track of sales tax that has been collected from customers but not yet remitted to the government.