As the Ratio of Arrival Rate to Service Rate Is

question 78

Multiple Choice

As the ratio of arrival rate to service rate is increased,which of the following is likely?

• A)Customers move through the system in less time because utilization is increased.
• B)Customers move through the system more slowly because utilization is increased.
• C)Utilization is decreased because of the added strain on the system.
• D)The average number in the system decreases.
• E)The arrival rate decreases.

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Definitions:

Forward Rate

The agreed-upon price for a financial transaction that will occur at a future date, often used in the context of foreign exchange or interest rates.

Spot Rate

The current market price of a currency, security, or commodity available for immediate settlement.

Absolute Purchasing Power Parity

A theory that suggests that, in the absence of transaction costs and other barriers, identical goods and services in different countries should have the same price when expressed in a common currency.

Exchange Rate

The amount one currency is valued at when translated into another currency.