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Customers arrive at a barber shop according to a Poisson process at a rate of eight per hour. Each customer requires 15 minutes on average.

Customers arrive at a barber shop according to a Poisson process at a rate of eight per hour. Each customer requires 15 minutes on average. The barber shop has four chairs and a single barber. A customer does not wait if all chairs are occupied. Assuming an exponential distribution for service times. Suppose the barber installs one more chair for customers to wait in. How much does the revenue in- crease due to the extra chair?

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