A Waiting Line Model Meeting the Assumptions of M/M/1 Has

question 22

Multiple Choice

A waiting line model meeting the assumptions of M/M/1 has an arrival rate of 2 per hour and a service rate of 6 per hour.What is the utilization factor for the system?

• A)0.25
• B)0.33
• C)0.50
• D)0.67
• E)3.00

---

Definitions:

Flow-through

A business entity that passes income to the owners or investors, avoiding corporate income tax, including S corporations, partnerships, and sole proprietorships.

C Corporation

A corporate legal framework where the entity is distinct for tax purposes from its owners or shareholders.

S Corporation

A type of corporation that meets specific Internal Revenue Code requirements, allowing profits, and some losses, to be passed directly to owners' personal income without being subject to corporate tax rates.

Rental Income

Income received from renting out property or equipment. This income is reportable and taxable.