Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cars arrive at a small gas station to refuel according to a Poisson process with rate 30 per hour, and have an exponential service time

Cars arrive at a small gas station to refuel according to a Poisson process with rate 30 per hour, and have an exponential service time distribution with mean 4 minutes. Since there are four gas pumps available, four cars can refuel simultaneously, but unfortunately there is no room for cars to wait. Hence, if a car arrives when all pumps are busy, the driver leaves immediately. For each customer that is served, an average profit of $30 is made. What is the long-run expected profit per day (consisting of eight hours)?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Legal Environment

Authors: Jeffrey F Beatty, Susan S Samuelson

3rd Edition

0324537115, 9780324537116

More Books

Students also viewed these Economics questions