Customers Arrive at the One Remaining Full-Service Gas Station in the Country

question 86

Multiple Choice

Customers arrive at the one remaining full-service gas station in the country at the rate of 45 per minute and are served by the first available of three pump jockeys who can dole out gas and check oil at the rate of 20 customers per minute. Both service and interarrival times are governed by the exponential distribution. The probability that no pump jockey is busy is 0.0748.
-Use the information in Scenario C.3.What is the average time a customer spends in the system?

• A) Fewer than or equal to five seconds
• B) Greater than five seconds but fewer than or equal to six seconds
• C) Greater than six seconds but fewer than or equal to seven seconds
• D) Greater than seven seconds

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Definitions:

Dividend Growth Rate

The dividend growth rate is a financial metric that measures the annualized percentage rate of growth of a company's dividend payments to its shareholders.

Market Price

The current market quote for the sale or purchase of an asset or service.

Debt-equity Ratio

A calculation showing how much a firm relies on borrowed funds, determined by dividing the sum of its obligations by the equity of its shareholders.

Pre-tax Cost

The cost of an investment or expense before any taxes are applied, often considered when evaluating investment options.