Table 13-4 A Pawn Shop in Arlington,Texas,has a Drive-Through Window to Better

question 29

Multiple Choice

Table 13-4
A pawn shop in Arlington,Texas,has a drive-through window to better serve customers.The following tables provide information about the time between arrivals and the service times required at the window on a particularly busy day of the week.All times are in minutes. The first random number generated for arrivals is used to tell when the first customer arrives after opening.
-According to Table 13-4,the time between successive arrivals is 1,2,3,or 4 minutes.The store opens at 8:00 a.m. ,and random numbers are used to generate arrivals and service times.The first random number to generate an arrival is 39,while the first service time is generated by the random number 94.What time would the first customer finish transacting business?

• A)8:03
• B)8:04
• C)8:05
• D)8:06
• E)None of the above

---

Definitions:

Discount Rate

The rate of interest applied to calculate the current value of future cash flows.

Cash Flows

The sum total of cash and assets similar to cash that shift into and out of a commercial establishment.

Compounded Monthly

The process of calculating interest on both the initial principal and the accumulated interest from previous periods on a monthly basis.

Mortgage

A legal agreement by which a bank or creditor lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.