Customers Arrive at a Ticket Counter at the Rate of 50

question 56

Multiple Choice

Customers arrive at a ticket counter at the rate of 50 customers per hour, according to a Poisson distribution. There are three ticket agents. Customers select the first available agent from one line. Each agent can process 20 customers per hour with exponential service times.
-Use the information in Scenario C.4.What is the average waiting time in line?

• A) Fewer than or equal to 3.5 minutes
• B) Greater than 3.5 minutes but fewer than or equal to 4.5 minutes
• C) Greater than 4.5 minutes but fewer than or equal to 5.5 minutes
• D) Greater than 5.5 minutes

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Definitions:

Economies of Scale

Economies of scale refer to the cost advantage that arises with an increased output of a product, as fixed costs are spread out over more units of production, leading to a decrease in the per-unit cost.

Diseconomies of Scale

The phenomenon where production costs increase as a firm's production scale becomes too large, leading to inefficiencies.

Diseconomies of Scale

The phenomenon where production costs increase as a company grows larger, leading to reduced efficiency.

Bureaucratic

Pertaining to a system of administration characterized by strict policies, procedures, and hierarchy.