It seems to me that there aren't any Stochastic wizards on this forum. I am taking a course in it now, and easy as it seems, it can be rather elusive.
Two researchers each model the number of customers entering a grocery store during an hour's time using Binomial counting process. It has been observed that there are an average of 36 customers per hour. Researcher A uses frames of 1 second in length, whereas researcher B uses frames of 1 minute in length.
(a) Find the probability of an arrival during a frame for both A and B
(b) Give the means and standard deviations for the number of customers arriving in an hour for the two frame lengths in (a).
(c) Researcher A points out that 1 minute is too long a time for a frame because more than 1 customer can arrive in that time. Nevertheless, researcher B goes ahead with a simulation using 1-minute frames. In what way will B's simulation give an incorrect picture of the arrival of customers at the store?