Customers arrive at a carwash with on average once every 20 minutes. It seems likely that customer arrivals follow an exponential distribution. In a simulation, what formula would you use to estimate how long it will be until the next arrival occurs?
A) = 20 + (20 − 0) × RAND()
B) = NORM.INV(RAND(),20,3)
C) = NORM.INV(RAND(),20,0)
D) = 20 × LN(RAND())
E) = − 20 × LN(RAND())

Question

Quizplus · Accepted Answer

The formula for estimating the time until the next arrival in an exponential distribution is given by the negative natural logarithm of a random number generated by a uniform distribution, multiplied by the mean arrival time. Therefore, the formula to use in this case is E) = − 20 × LN(RAND()).

Customers Arrive at a Carwash with on Average Once Every