A small bookie shop has room for at most two customers. Potential cus- tomers arrive at a Poisson rate of ten customers per hour; they enter if there is room and are turned away, never to return, otherwise. The bookie serves the admitted customers in order, requiring an exponentially distributed time of mean 4 minutes per customer.

(a) Find the steady-state distribution of the number of customers in the shop.

(b) Find the rate at which potential customers are turned away.

(c) Suppose the bookie hires an assistant; the bookie and assistant, working together, now serve each customer in an exponentially distributed time of mean 2 minutes, but there is only room for one customer (i.e., the customer being served) in the shop. Find the new rate at which customers are turned away.

Text Book: Stochastic Processes: Theory for Applications By Robert G. Gallager.