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Paladinen [302]
3 years ago
10

Customers arrive at a bank teller machine at the rate one every three minutes. Each customer spends an average of two minutes at

the teller machine. The arrival rate and the service rate are approximated by Poisson and negative exponential distributions respectively.
Determine the following:
a – utilization of the teller machine
b – average number of customers in line
c – average number of customers in the system
d – average time customers spend in line
e – average time customers spend in the system
f – probability of three customers in the system
g – probability of two or more customers in the system.
Business
1 answer:
Julli [10]3 years ago
3 0

Answer:

Arrival rate

1 every 3 minutes

1 minute = 1/3 = 0.33

60 minutes = 0.33*60 = 19.8 = 20 per hour

λ = 20 per hour

Service Rate

1 every 2 minutes

1 minutes = 1/2 = 0.5

60 minutes = 0.5*60 = 30 per hour

µ = 30 per hour

a. Utilization of Teller Machine

P = λ / µ

P = 20/30

P = 66.67%

b. Average number of customers in line

Lq = pL = (λ/µ) (λ/µ- λ)

= (20 / 30) (20 / 30 - 20)

= 20/30 * 20 / 10

= 1.33 customers

c. Average number of customers in the system

L = (λ/µ- λ)

= 20 / 30 - 20

= 20 / 10

= 2 customers

d. Average time customer spends in line

Wq = λ/[µ*(µ- λ)]

= 20 / [30 * (30-20)]

= 20 / 30 * 10

= 0.06667 hours or 4 minutes

e. Average time customers spend in the system

W = 1/(µ- λ)

= 1 / 30 - 20

= 1/10

= 0.10 hours or 6 minutes

f. Probability that there are 3 customers in the system

Pn = (1-p)*p^n

= (1 - 20/30) * (20/30)^3

= 0.3333 * 0.296296

= 0.09876

g. Probability that there are two or more customers in the system

= 1 - P(0) - P(1)

= 1 - (1 - 20/30) * (20/30)^0 - (1 - 20/30) * (20/30)^1

= 1 - 1/3 - 2/9

= 4/9

= 0.4444

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River Fish : NON EXCLUDABLE , RIVAL & COMMON GOODS

Explanation:

Excludable Goods can be feasibly prevented to be consumed by non payers . Rival goods consumption doesn't reduce their availability to be consumed by other consumers

Private stream fish are feasibly prevented to be used by others for free , so are excludable . However , catching of fish by one reduces the fishes to be caught by others & so is Rival . Such Excludable , Rival goods are 'Private Goods'

Free access river cant be feasibly prevented to be used by others for free , so are Non Excludable . However (similar) , catching of fish by one reduces the fishes to be caught by others & so is Rival . Such Non Excludable , Rival Goods are 'Common Goods' . These have over exploitation risk as per  a theory 'Tragedy of Commons'

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The cost to manufacture one unit of Rinker Audio Products' bestselling hearing aid, the Magnifier, is $87.50. The CFO of the com
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Answer:

d. economies of scale

Explanation:

Based on the information provided within the question it can be said that this concept is known as an economy of scale. Like mentioned in the question this concept states that as a company scales their operation, the cost of each input unit decreases as their output or production increases, Thus granting the company a cost advantage. As is happening in this scenario.

4 0
3 years ago
Depreciation Methods Vorst Corporation's schedule of depreciable assets at December 31, 2016, was as follows: Asset Cost Accumul
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Answer:

c. $14,400

Explanation:

Double declining depreciation method can be described as an accelerated depreciation technique which charges depreciation expense faster than the straight-line depreciation method, because double declining method obtains its depreciation rate by multiplying the rate of straight-line depreciation method by 2.

From the Vorst Corporation's schedule of appreciable assets at December 31, 2016, the following data are obtained for Asset A:

Cost = $100,000

Accumulated Depreciation = $64,000

Acquisition Date = 2015

Residual value = $20,000

Estimated useful life = 5 years

Therefore, we have:

Straight line method depreciation rate = 1 / Estimated useful life = 0.20, or 20%

Double declining depreciation rate = Straight line method depreciation rate * 2 = 40%

Beginning book value in 2017 = Cost - Accumulated Depreciation = $100,000 - $64,000 = $36,000

Depreciation expense for 2017 = Beginning book value in 2017 * Double declining depreciation rate = $36,000 * 40% = $14,400.

Therefore, Vorst should record $14,400 as depreciation expenses in 2017 for Asset A.

Important End Note:

Under the double declining depreciation method, residual is adjusted for in the last year of the estimated useful life of the asset.

Based on the information for Asset A, its last useful year is 2019 and that is why the residual value is not adjusted for in 2017 above.

6 0
4 years ago
Yams Company reports the following operating results for the month of August: sales $400,000 (units 5,000), variable costs $240,
iogann1982 [59]

Answer:

The profit is higher when there is increase in sales price by 10% than when the Variable Cost is reduced to 55% of sales.

Explanation:

Sales price per unit = (400,000 / 5,000)

Sales price per unit = $80

Sales (5000 x 80) =         400000

Less Variable Cost           240000

Contribution Margin         160000

Less; Fixed Cost              <u> 90000</u>

Profit                                <u> 70,000</u>

Management Consideration 1

When we Increase price by 10%

Increase selling price = 80 + 10/100 * 80

=$68

Sales (5000 x 68) =         440000

Less Variable Cost           240000

Contribution Margin         200000

Less; Fixed Cost              <u> 90000</u>

Profit                                 <u>110,000</u>

Management Consideration 2

When Variable Cost is reduced to 55% of sales

New Variable cost = 80 * 55/100

=$44

Sales (5000 x 68) =                             400000

Less Variable Cost (44 * 5000)          220000

Contribution Margin                            180000

Less; Fixed Cost                                  <u> 90000</u>

Profit                                                   <u> 900,000</u>

Conclusion

The profit is higher when there is increase in sales price by 10% than when the Variable Cost is reduced to 55% of sales.

8 0
3 years ago
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