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Gekata [30.6K]
3 years ago
9

A gas station with only one gas pump employs the following policy: If a customer has to wait to buy the gasoline, the price is $

3.50 per gallon. If she does not have to wait to buy the gasoline, the price is $4.00 per gallon. Customers arrive according to a Poisson process with a mean rate of 20 per hour. Service times at the pump have an exponential distribution with a mean of 2 minutes. Arriving customers always wait until they can eventually buy gasoline. Determine the expected price (in $) of gasoline per gallon. Group of answer choices
Business
1 answer:
vekshin13 years ago
5 0

Answer:

Explanation:

The arrival rate (λ) = 20 customers per hour. Since the service times at the pump have an exponential distribution with a mean of 2 minutes, therefore the service rate (μ) = 60 / 2 = 30 customers per hour.

The probability of the no  customers being in the system(P₀) is given as:

P_0=1-\frac{\lambda}{\mu} =1-\frac{20}{30}=1-0.67=0.33

If no customer is in the system we can sell gasoline for $4 /gallon to the next customer. The expected price p of gasoline is given by:

P=P_0*4+(1-P_0)3.5=0.33*4+(1-0.33)3.5=1.32+2.345=3.665

P = $3.665 per gallon

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5 0
3 years ago
A common theme in the Asian culture is the emphasis on harmony and collectivism, as a result, the ________ form of decision maki
scoray [572]

Answer:

committee

Explanation:

<u>The process in which a whole collection is involved in making the best and most rational decision is called committee decision making.</u>

<u>These committees should decide jointly about the best strategic arrangement, and the whole process should be done in agreement, unity, and harmony.</u> Members should have the spirit of collectivism, should respect other people's decision and all share their input regarding the decision.

8 0
3 years ago
After graduation, you decide to go into a partnership in an office supply store that has existed for a number of years. Walking
MakcuM [25]

Answer:

257 boxes

Explanation:

The computation is given below;

Daily Demand would be

= 5000 ÷ 365

Standard Deviation = 10 boxes

Lead Time = 2 Weeks + 3 Days = 17 Days

Service Level = 0.98

Reorder Point = avg(d) × LT + z ×  σd × sqrt(LT)

= 5000 ÷ 365 × 17 + 2.05 × 10 × 170.5

= 317

So, the number of boxes should be ordered is  

= 317 - 60

= 257 boxes

6 0
3 years ago
A service contract for a video projection system costs $195 a year. you expect to use the system for four years. instead of buyi
aleksklad [387]

Answer:

The future value of an annuity (FVA) is $828.06

Explanation:

The future value of an annuity (FVA) is the value of payments at a specific date in the future based on the payments being recurring and assuming a discount rate. The future value of an annuity (FVA) is based on regular cash flow. The higher the discount rate, the greater the annuity's future value.

FVA= P * \frac{(1+r)^n-1}{r}

Where:

FVA is The future value of an annuity (FVA)

P is payment per period

n is the number of period

r is the discount rate

Given that:

P = $195

r = 4% = 0.04

n = 4 years

FVA= P * \frac{(1+r)^n-1}{r}

substituting values

FVA= 195 * \frac{(1+0.04)^4-1}{0.04}=195*4.246=828.06\\FVA=824.06

The future value of an annuity (FVA) is $828.06

4 0
3 years ago
Read 2 more answers
You can save $1,000 per year for the next six years in an account earning 10 percent per year. How much will you have at the end
kicyunya [14]

Answer:

At the end of the sixth year, you will have:

= $8,487.17.

Explanation:

a) Data and Calculations:

Annual savings = $1,000

Interest rate per year = 10%

Period of savings = 6 years

First deposit = today

From an online financial calculator:

N (# of periods)  6

I/Y (Interest per year)  10

PV (Present Value)  0

PMT (Periodic Payment)  1000

 

Results

FV = $8,487.17

Sum of all periodic payments $6,000.00

Total Interest $2,487.17

8 0
3 years ago
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