Consider an Espresso Stand with a Single Barista

question 45

Multiple Choice

Consider an espresso stand with a single barista.Customers arrive at 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 hour.The average number of customers in the system (i.e. ,waiting and being served) is

• A)4.0
• B)3.8
• C)3.2
• D)2.0

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Definitions:

Terminal Value

The estimated value of a business or investment at the end of a specified period, often used in discounted cash flow analysis.

Market Potential

An estimate of the maximum total sales of a product or service by all suppliers in a market during a specific time period, under certain conditions.

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FDA Approval is the authorization granted by the U.S. Food and Drug Administration for a drug, medical device, or food product to be marketed or sold after meeting safety and efficacy standards.

Terminal Value

The value of an investment at the end of a specified period, often used in discounted cash flow analysis to estimate future cash flows beyond a forecast period.