Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 6. (15 pts) You own a fast food shop, which also has a drive-thru window. Every day when you open the shop, you will

image text in transcribed

Problem 6. (15 pts) You own a fast food shop, which also has a drive-thru window. Every day when you open the shop, you will wait on average for 30 minutes before the first customer walks in, and on average 15 minutes before the first vehicle comes to the drive-thru. Suppose both waiting times follow exponential distributions and they are independent. In the following questions, if you are using normal approximations, leave your final answer in terms of the standard normal CDF 0. (a) (5 pts) What is the average waiting time for your first customer of the day (either walk-in or drive-thru)? (b) (5 pts) When the waiting time for the first customer exceeds 20 minutes, you call it a bad day. Approximate the probability that you will have more than 60 bad days in a year of 365 days. Justify your use of this approximation. (c) (5 pts) When the waiting time for the first customer is shorter than 3 seconds (i.e., 0.05 minutes), it is a great day. Approximate the probability that you will have exactly 3 great days in a year. Problem 6. (15 pts) You own a fast food shop, which also has a drive-thru window. Every day when you open the shop, you will wait on average for 30 minutes before the first customer walks in, and on average 15 minutes before the first vehicle comes to the drive-thru. Suppose both waiting times follow exponential distributions and they are independent. In the following questions, if you are using normal approximations, leave your final answer in terms of the standard normal CDF 0. (a) (5 pts) What is the average waiting time for your first customer of the day (either walk-in or drive-thru)? (b) (5 pts) When the waiting time for the first customer exceeds 20 minutes, you call it a bad day. Approximate the probability that you will have more than 60 bad days in a year of 365 days. Justify your use of this approximation. (c) (5 pts) When the waiting time for the first customer is shorter than 3 seconds (i.e., 0.05 minutes), it is a great day. Approximate the probability that you will have exactly 3 great days in a year

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

The Audit Is A Powerful Management Tool

Authors: Fateh Bouchene

1st Edition

6204366548, 978-6204366548

More Books

Students also viewed these Accounting questions