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evablogger [386]
3 years ago
11

A grocery store has three open checkout lanes. On average, 45 shoppers arrive at these lanes per hour. The coefficient of variat

ion of the interarrival time is equal to one. The average service time for all the lanes is 18 customers per hour, and the coefficient of variation of the service time distribution for all three lanes is three minutes. What is the percentage decrease in utilization when one more checkout lane is added to the system?
Business
1 answer:
jonny [76]3 years ago
3 0

Answer:

The percentage decrease in utilization is 83.33%

Explanation:

According to the data, we have the following:

Coefficient of variance, m = 3

Arrival rate, ra = 45 per hour

Service rate, re = 18 per hour per lane

Therefore, in order to calculate the percentage decrease in utilization when one more checkout lane is added to the system, we have to use the following formula:

So, percentage decrease in utilization = ra / (m.re)

                                                                = 45 / (3*18) = 0.833

The percentage decrease in utilization is 83.33%

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The demand for gasoline is inelastic and the supply of gasoline in the winter is elastic. Therefore,
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3 0
3 years ago
MV Corporation has debt with market value of $ 101 ​million, common equity with a book value of $ 100 ​million, and preferred st
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Answer:

Weight of debt = 0.2453 or 24.53%

Weight of preferred stock = 0.0486 or 4.86%

Weight of common equity = 0.7061 or 70.61%

Explanation:

The WACC or weighted average cost of capital is the cost of a firm's capital structure. The capital structure of a company can consist of one or more of the following components namely debt, preferred stock and common stock.

To calculate the WACC, we use the market value of each component.

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Weight of common equity = 290.7 / 411.7  => 0.7061 or 70.61%

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4 years ago
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