Math Problem Statement

A retail store wants to model the time between customer arrivals to optimize staffing levels and improve customer service. The store has tracked customer arrivals over a month and found that on average, a customer arrives every 10 minutes. This means the average time between arrivals is 10 minutes. Help management understand:

a) What would be the probability that a customer will arrive within the next 5 minutes? (7 Marks) b) What would be the probability that no customer will arrive within the next 15 minutes? (7 Marks) c) If the store implements a promotional event expected to double the rate of customer arrivals (πœ†=0.2), what is the new probability that a customer will arrive within the next 5 minutes?

Solution

The time between customer arrivals can be modeled using an exponential distribution, which is defined by the probability density function:

f(t;Ξ»)=Ξ»eβˆ’Ξ»t,tβ‰₯0f(t; \lambda) = \lambda e^{-\lambda t}, \quad t \geq 0

where:

  • Ξ»\lambda is the rate parameter (average number of arrivals per minute),
  • tt is the time between arrivals.

The cumulative distribution function (CDF) is:

P(T≀t)=1βˆ’eβˆ’Ξ»tP(T \leq t) = 1 - e^{-\lambda t}

where P(T≀t)P(T \leq t) gives the probability that a customer will arrive within tt minutes.

Given:

  • Average time between arrivals = 10 minutes β†’ Ξ»=110=0.1\lambda = \frac{1}{10} = 0.1 arrivals per minute.
  • For the promotional event, Ξ»=0.2\lambda = 0.2 arrivals per minute.

a) Probability that a customer will arrive within the next 5 minutes:

The formula for P(T≀t)P(T \leq t) is:

P(T≀t)=1βˆ’eβˆ’Ξ»tP(T \leq t) = 1 - e^{-\lambda t}

Substitute Ξ»=0.1\lambda = 0.1 and t=5t = 5:

P(T≀5)=1βˆ’eβˆ’0.1Γ—5P(T \leq 5) = 1 - e^{-0.1 \times 5}

P(T≀5)=1βˆ’eβˆ’0.5β‰ˆ1βˆ’0.6065=0.3935P(T \leq 5) = 1 - e^{-0.5} \approx 1 - 0.6065 = 0.3935

So, the probability is approximately 39.35%.


b) Probability that no customer will arrive within the next 15 minutes:

This is the probability P(T>t)P(T > t), which is the complement of P(T≀t)P(T \leq t):

P(T>t)=eβˆ’Ξ»tP(T > t) = e^{-\lambda t}

Substitute Ξ»=0.1\lambda = 0.1 and t=15t = 15:

P(T>15)=eβˆ’0.1Γ—15P(T > 15) = e^{-0.1 \times 15}

P(T>15)=eβˆ’1.5β‰ˆ0.2231P(T > 15) = e^{-1.5} \approx 0.2231

So, the probability is approximately 22.31%.


c) New probability that a customer will arrive within the next 5 minutes during the promotional event:

The new rate parameter is Ξ»=0.2\lambda = 0.2 (double the rate). Using the same formula for P(T≀t)P(T \leq t):

P(T≀5)=1βˆ’eβˆ’Ξ»tP(T \leq 5) = 1 - e^{-\lambda t}

Substitute Ξ»=0.2\lambda = 0.2 and t=5t = 5:

P(T≀5)=1βˆ’eβˆ’0.2Γ—5P(T \leq 5) = 1 - e^{-0.2 \times 5}

P(T≀5)=1βˆ’eβˆ’1β‰ˆ1βˆ’0.3679=0.6321P(T \leq 5) = 1 - e^{-1} \approx 1 - 0.3679 = 0.6321

So, the probability is approximately 63.21%.


Summary:

a) Probability that a customer will arrive within the next 5 minutes: 39.35%.
b) Probability that no customer will arrive within the next 15 minutes: 22.31%.
c) New probability that a customer will arrive within the next 5 minutes during the promotional event: 63.21%.

Would you like further clarification or calculations?


Follow-up Questions:

  1. How would the probabilities change for other time intervals (e.g., 2 minutes or 20 minutes)?
  2. Can we use a different distribution to model customer arrivals? Why or why not?
  3. How would increasing the arrival rate further impact customer service planning?
  4. What is the expected number of customers arriving within the next hour before and during the promotional event?
  5. How can this model be extended to consider multiple service desks?

Tip:

When modeling arrival times, remember that the exponential distribution assumes independence between events, meaning the time until the next customer does not depend on previous arrivals.

Ask a new question for Free

By Image

Drop file here or Click Here to upload

Math Problem Analysis

Mathematical Concepts

Probability
Exponential Distribution
Cumulative Distribution Function

Formulas

P(T ≀ t) = 1 - e^(-Ξ»t)
P(T > t) = e^(-Ξ»t)

Theorems

Exponential distribution properties

Suitable Grade Level

Undergraduate (Statistics or Applied Mathematics)