Exhibit 13.3 The Following Questions Refer to the Information Below

question 45

Essay

Exhibit 13.3
The following questions refer to the information below.
A company has recorded the following customer inter-arrival times and service times for 10 customers at one of its single teller service lines. Assume the data are exponentially distributed and the 10 data points represent a reasonable sample.
-Refer to Exhibit 13.3. What is the mean service rate per hour?

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Definitions:

Coinsurance Clause

A provision in certain insurance policies requiring the policyholder to bear a specified percentage of the costs of covered services.

Property Insurance

Insurance coverage that provides protection against most risks to property, such as fire, theft, and some types of weather damage.

Fair Market Value

The price that a property would sell for on the open market between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts.

Indemnity Contracts

Agreements that provide protection or security against potential loss or damage, often requiring one party to compensate the other for any loss or damage incurred.