Question: Customer arrivals at an ATM are a random Poisson variable, and there is an average time of 5 minutes between each arrival. Moreover, the time
Customer arrivals at an ATM are a random Poisson variable, and there is an average time of minutes between each arrival. Moreover, the time spent by a customer at the counter is an exponential random variable with an average time of minutes. Using the minute as a unit of time, answer the following questions:
a What is the probability that a client occupies the counter for less than minutes?
b What is the probability that there are at least two clients in the queue?
c If the bank installs a second counter, what will be the average time spent by a client in the queue?
d If the bank installs a second counter, what will be the average number of unoccupied counters?
e Suppose the bank is willing to install a second counter only when clients will have to wait at least minutes on average before being able to access a counter. What should the arrival rate of clients be to justify the installation of a second counter?
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