Question

A passenger arrives at a bus stop(poisson distribution, lamda = 1min) and waits for a bus. Every bus runs at 10 mins Intervals and all people who have waited for the bus board the bus. If a passenger waits 1 min, it costs 1,000 dollars. So, if a passenger waits 2mins, it costs 2,000 dollars.

(1)What's the expected cost per min?

It's renewal reward process.

Answer 1