Consider an Espresso Stand with a Single Barista

question 29

Multiple Choice

Consider an espresso stand with a single barista.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 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:

Adam Smith

An 18th-century Scottish economist and philosopher, best known for his theory of the benefits of a free market economy.

Public Good

A service or product offered for free to every member of a society, made available by either governmental entities or private organizations without aiming for financial gain.

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