Automobile Service Centre Narrative

question 6

Essay

Automobile Service Centre Narrative
An automobile service centre can take care of eight cars per hour. Assume that the cars arrive at the service centre randomly and independently of each other at a rate of six per hour, on average.
-Refer to Automobile Service Centre Narrative. What is the probability that fewer than two cars will be in the service centre at any point during a given hour?

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Definitions:

Purchase Returns

Purchase returns involve goods sent back to the supplier, usually due to defects, inaccuracies, or dissatisfaction, resulting in a refund or credit.

Ending Inventory

The final value of goods available for sale at the end of an accounting period after all purchases and sales have occurred.

Gross Profit Method

An inventory estimation method used to estimate the cost of goods sold and ending inventory based on the gross profit margin.

Retail Inventory Method

An accounting method used in the retail industry to estimate inventory cost by relating the cost of merchandise and its retail price.