Consider an Espresso Stand with a Single Barista

question 9

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 time in minutes a customer spends in the system (i.e. ,waiting and being served) is

• A)0.114 minute
• B)0.143 minute
• C)6.84 minutes
• D)8.58 minutes

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Definitions:

Bondholders

Individuals or entities that hold the debt securities issued by corporations or governments, known as bonds.

Gain or Loss

The financial result from a transaction when the selling price of an asset differs from its book value.

Bonds

Long-term debt securities issued by corporations and governments to raise funds, paying interest to holders.

Effective-Interest Method

An accounting practice used to amortize the discount or premium on bonds payable over the bond’s life, reflecting a constant rate of interest.