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A telephone company establishes a direct connection between two cities expecting Poisson traffic with rate 30 calls per minute.

A telephone company establishes a direct connection between two cities expecting Poisson traffic with rate 30 calls per minute. The duration of calls are independent and exponentially distributed with mean 3 minutes. How many circuits are needed to ensure that an attempted call is blocked (because all circuits are busy) with probability less than 0.01? It is assumed that blocked calls are lost, i.e., a blocked call is not attempted again.

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