A Grocery Clerk Can Serve 20 Customers Per Hour on Average

question 23

Essay

A grocery clerk can serve 20 customers per hour on average and the service time follows an exponential distribution. What is the probability that a customer's service time is more than 4 minutes?

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Definitions:

Variable Overhead

Overhead costs that fluctuate with the level of production activity, such as utilities or indirect materials.

Direct Materials

Raw materials that are directly attributable and allocable to a finished product in the manufacturing process.

Direct Labor-Hours

The total hours worked directly on the manufacturing of goods.

Variable Overhead

Costs that fluctuate with changes in production volume, such as utilities and materials, affecting the cost to produce goods or services.