Customers Arrive Every Three Minutes Governed by a Poisson Distribution

question 76

Multiple Choice

Customers arrive every three minutes governed by a Poisson distribution.A single server is capable of handling twenty-five customers per hour and this service time is exponentially distributed.About how long do customers wait in line?

• A)a little over nine minutes
• B)a little over thirteen minutes
• C)exactly twenty minutes
• D)exactly twenty-five minutes

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Definitions:

Exchange Rates

The rate at which one currency can be exchanged for another, influencing international trade, investments, and travel.

Foreign Exchange Risk

The potential change in earnings or financial position from fluctuating exchange rates affecting international financial transactions.

Forward Contract

An agreement to buy or sell an asset at a future date for a price agreed upon today.

Spot Rate

Refers to the immediate exchange rate at which one currency can be exchanged for another without any delay.