Answer:
The distribution is
Solution:
As per the question:
Total no. of riders = n
Now, suppose the is the time between the departure of the rider i - 1 and i from the cable car.
where
= independent exponential random variable whose rate is
The general form is given by:
(a) Now, the time distribution of the last rider is given as the sum total of the time of each rider:
Now, the sum of the exponential random variable with with rate
is given by:
We are given that revenue of Tacos is given by the mathematical expression .
(A) The constant term in this revenue function is 240 and it represents the revenue when price per Taco is $4. That is, 240 dollars is the revenue without making any incremental increase in the price.
(B) Let us factor the given revenue expression.
Therefore, correct option for part (B) is the third option.
(C) The factor (-7x+60) represents the number of Tacos sold per day after increasing the price x times. Factor (4+x) represents the new price after making x increments of 1 dollar.
(D) Writing the polynomial in factored form gives us the expression for new price as well as the expression for number of Tacos sold per day after making x increments of 1 dollar to the price.
(E) The table is attached.
Since revenue is maximum when price is 6 dollars. Therefore, optimal price is 6 dollars.
