Question: Steph Currys Coffee Shop decides to install an automatic coffee vending machine outside one of its stores to reduce the number of people standing in
Steph Currys Coffee Shop decides to install an automatic coffee vending machine outside one of its stores to reduce the number of people standing in line inside. The shop charges $3.50 per cup. The service time is a constant 2.8 minutes, and the arrival rate is 15 per hour (Poisson distributed). a) What is the average waiting time in line? b) What is the average number of people in line? c) The shop decides to raise the price to $5 per cup and takes 60 seconds off the service time. However, because the coffee is now so expensive, the arrival rate drops to 10 per hour. Now what are the average wait time and the average number of people in the queue (waiting)?
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