There are at present 40 solar energy construction firmsin the state of Indiana. An average of 20 solar energy construction firms open each year in the state. The averagefirm stays in business for 10 years. If present trends continue,what is the expected number of solar energy constructionfirms that will be found in Indiana? If the time between theentries of firms into the industry is exponentially distributed,what is the probability that (in the steady state) there willbe more than 300 solar energy firms in business? (Hint: Forlarge l, the Poisson distribution can be approximated by anormal distribution.)

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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There are at present 40 solar energy construction firms
in the state of Indiana. An average of 20 solar energy

construction firms open each year in the state. The average
firm stays in business for 10 years. If present trends continue,
what is the expected number of solar energy construction
firms that will be found in Indiana? If the time between the
entries of firms into the industry is exponentially distributed,
what is the probability that (in the steady state) there will
be more than 300 solar energy firms in business? (Hint: For
large l, the Poisson distribution can be approximated by a
normal distribution.)

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