Question

In: Accounting

Cars arrive at Carla’s Muffler Shop for repair work at an average of 3 per hour,...

Cars arrive at Carla’s Muffler Shop for repair work at an average of 3 per hour, following an exponential distribution. (a) What is the expected time between arrivals? (b) What is the variance of the time between arrivals?

Use Appendix C

Solutions

Expert Solution

Formula sheet

A B C D E F G
2
3 Exponential Distribution function is given by following formula:
4
5    f(x) = ?e-?x
6
7 Where:
8    ?: The rate parameter of the distribution, = 1/µ (Mean)
9    f(x): Exponential probability density function
10    x: Random variable
11
12 Mean of exponential function =1/?
13 Variance of exponential function =1/?2
14
15 Since ? is the rate parameter, car arriving at the rate of 3 per hour is ?.
16 ?= 3 Per hour
17
18 a)
19
20 Expected time between arrival =Mean of exponential distribution
21 =1/ ?
22 =1/D16 hours
23 =D22*60 min
24
25 Hence Expected time between arrival =D23 min
26
27 b)
28
29 Variance of exponential function =1/?2
30 =1/(D16^2) =1/(D16^2)
31
32 Hence Variance of time between arrival is =D30
33

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