Customers Arrive Every Three Minutes Governed by a Poisson Distribution

question 90

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.What is the percentage of the server's six-hour shift is one customer receiving service while and two are waiting in line?

• A)5%
• B)10%
• C)15%
• D)21%

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Definitions:

Cost-Plus Pricing

A technique for pricing where a distinct markup is added to the unit cost of a product to establish its selling price.

Linear Programming

A mathematical method used to determine the best possible outcome or solution from a given set of parameters or constraints, usually applied in maximizing or minimizing a linear function.

Material Charges Formula

A calculation used to determine the direct costs associated with the materials used in the production of goods or services.

Pricing Decisions

Refers to the process of setting the price for a product or service, considering factors like cost, competition, and customer demand.