Question

A young entrepreneur wants to set up a lemonade stand at a busy intersection. Customers arrive at a rate of 38 customers per hour according to a Poisson distribution. Customers will be served at the average rate of 58 customers per hour with exponential service times. What is the average utilization rate (%) of the entrepreneur

Answer 1

65.5%

Explanation:

Arrival rate, λ = average number of customers per hour = 38

Servive rate, μ = number of customers attended to per hour = 58

Utilization factor, ρ = λ / μ

ρ = 38 / 58

ρ = 0.6551724

Utilization rate (%) = 0.6551724 * 100% = 65.5%