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blsea [12.9K]
3 years ago
12

You own a big rental car company in Indianapolis and maintain a fleet of 50 SUVs. Customers make their rental car reservations u

sing an app before they arrive the location, and therefore, as long as a car is available in the lot they directly proceed to the car assigned them through the app for pick up. If all SUVs are rented, your customers are willing to wait until one is available. The average time between requests for an SUV is 2.5 hours, with a standard deviation of 2.5 hours. The arrival pattern remains to be consistent throughout the day (24 hrs). An SUV is rented, on average, for 4 days with a standard deviation of 1 day.
a) At any given time, what is the average number of SUVs parked in your company's lot? (Hint: you need to find the average number of SUVs rented and then subtract this number from the fleet size, i.e., 50. Make sure the time units match in your calculations.).
b) What is the average time a customer has to wait before getting a rental SUV (in (mins])?
c) ** You make a marketing survey and find that if you reduce daily rental price from $60 to $45, the average rental duration would become 5 days. What is the minimum demand rate [customers/day) that would justify the price decrease? (Assume that Va and CVp do not change). (Hint: You need to find how much you would make per day with the current pricing, i.e., Ip*$60/day, let's call it X for now. Then find how much you would make under the new pricing as a function of interarrival time [here, remember that rental duration changes). Then solve for the interarrival that gives a profit at least as high as X. Use this inter-arrival time you found to calculate the demand rate).
d) You are considering making a change on rental policy by limiting all SUV rentals to exactly 4 days. If you impose this restriction, the average interarrival time will go up to 3 hours and the standard deviation will become 3 hours. What would the waiting time be after this change in rental policy?

Business
1 answer:
jarptica [38.1K]3 years ago
7 0

Answer:

All the answers are attached below. Thanks.

Explanation:

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Answer:

The correct answer is option d.

Explanation:

Specialization in trade due to the difference in opportunity cost helps in improved allocation of resources globally. It leads to increased production of goods and services around the world as the resources are efficiently allocated.  

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The improved allocation will shift the production possibilities outward as countries will be able to produce more.

4 0
3 years ago
A school band performs a spring concert for a crowd of 600 people. the revenue for the concert is $3150. there are 150 more adul
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In this item, we let the number of tickets sold to the adults as x. With this, we can let the number of tickets sold to students with y. 

In this item, we are given that the sum of the number of students and adults is equal to 600. Further, we are also given that the difference is 150. The system of linear equation that would allow us to solve this item is,

               x + y = 600
               x - y = 150

Adding up the two equations will give us,
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Dividing by 2,
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Substituting this value to the first equation,
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Therefore, there are 375 and 225 number of tickets sold to adults and students, respectively. 
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3 years ago
The U.S. stock market has returned an average of about 9% per year since 1900. This return works out to a real return (i.e., adj
taurus [48]

Answer:

Final value= $242,726.24

Explanation:

Giving the following information:

The U.S. stock market has returned an average of about 9% per year since 1900.

This return works out to a real return (i.e., adjusted for inflation) of approximately 6% per year.

If you invest $100,000 and you earn 6% a year on it for 30 years.

We know inflation is 3% (average), so our real interest rate is approximately 3%.

We need the final value formula:

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Rudiy27

Explanation:

Earned income consists of income you earn while you are working a full-time job or running a business.

Passive income is income earned from rents, royalties, and stakes in limited partnerships.

Portfolio income is income from dividends, interest, and capital gains from stock sales.

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Answer:

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