Customers arrive at a retail store at an average rate of five per hour.The time between arrivals can be described by an Exponential distribution.Assuming a customer has just arrived (time = 12: 00 pm),find the arrival time for next two customers.Using the following random digits (left to right):
27,05
A) 12:16 PM. and 12:36 PM
B) 12:27 PM and 12:32 PM
C) 12:05 PM and 12:27 PM
D) 12:32 PM and 12:59 PM
E) none of the choices are correct.

Question

Quizplus · Accepted Answer

The exponential distribution with a rate of 5 per hour has a mean of 12 minutes per arrival. Using the random digits 27 and 05, convert them to probabilities (0.27 and 0.05) and use the inverse exponential function to find the time between arrivals. The first customer arrives at 12:16 PM (12 + 0.27*12) and the second at 12:36 PM (16 + 0.05*12).

Customers Arrive at a Retail Store at an Average Rate