Exponential Example 2

A car dealer needs to know the amount of time between customer drop-ins at his dealership so that he can staff the sales floor more efficiently. The car dealer knows an average of 6 customers visit the dealership every hour.

Checking the exponential distribution:

The car dealer wants to describe the time between successive customer drop-ins.
The probabilities of customer drop-ins remain the same from hour to hour.

These conditions fit the exponential distribution.

The resulting distribution would show the probability that x number of hours will pass between customer visits.