A Queuing Model Which Follows the M/M/1 Assumptions Has λ

question 20

Multiple Choice

A queuing model which follows the M/M/1 assumptions has λ = 2 and μ = 8. The average number in the system L_s is ________ and the utilization of the system is ________.

• A) 3; 100%
• B) 0.33; 25%
• C) 4; 33%
• D) 6; 25%
• E) 4; 25%

Understand the concept of the relevant range and its application to cost behavior.

Differentiate between variable, fixed, and mixed costs, including their behaviors in response to changes in activity levels.

Identify the characteristics and examples of committed fixed costs.

Understand the concept of step-variable costs and how they behave in response to changes in activity levels.

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Definitions:

Bond Refunding

The process of retiring existing bonds by issuing new bonds, usually to take advantage of lower interest rates.

Advantageous

Providing a benefit or favor, leading to improvement or an increased chance of success.

Book Value

The net value of an asset or liability recorded on the balance sheet, calculated as its original cost minus any depreciation, amortization, or impairment costs.

Less Than

A relational operator indicating that one value is smaller or inferior in size, amount, or degree compared to another.