Introduction to Management Science 12th Edition by Bernard Taylor

Exercise 2

The Rowntown Cab Company has four cabs that are on duty during normal business hours. The cab company dispatcher receives requests for service every 8 minutes, on average, according to an exponential distribution. The average time to complete a trip is 20 minutes (exponentially distributed). Determine the average number of customers waiting for service and the average time a customer must wait for a cab.