Question
Mr. Cherry owns a gas station on a highway in Vermont. In the afternoon hours, there are, on average, 30 cars per hour passing by
Mr. Cherry owns a gas station on a highway in Vermont. In the afternoon hours, there are, on average, 30 cars per hour passing by the gas station that would like to refuel. However, because there are several other gas stations with similar prices on the highway, potential customers are not willing to waitif they see that all of the pumps are occupied, they continue on down the road. The gas station has three pumps that can be used for fueling vehicles, and cars spend four minutes, on average, parked at a pump (filling up their tank, paying, etc.). What is the probability that all three pumps are being used by vehicles? How many customers are served every hour? What is the utilization of the pumps? How many pumps should it have to ensure that it captures at least 98 percent of the demand that drives by the station?
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