A Trucking Firm Has Five Trucks That Each Requires Service

question 27

Multiple Choice

A trucking firm has five trucks that each requires service at an average rate of once every 50 hours, according to an exponential distribution. The firm has a mechanic who needs five hours to complete the average job with exponential service times.
-Use the information in Scenario C.5.What is the average number of trucks waiting for service?

• A) Fewer than or equal to 0.10
• B) Greater than 0.10 but fewer than or equal to 0.14
• C) Greater than 0.14 but fewer than or equal to 0.18
• D) Greater than 0.18

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Definitions:

Labor Supply

Refers to the total hours that workers are willing and able to work at a given wage rate.

Marginal Utility

The additional pleasure or advantage gained from consuming one further unit of a particular product or service.

Additional Hour

An extra unit of time beyond the standard or expected duration, often applied in contexts like work or study to represent overtime or extended periods.

Leisure

Free time not taken up by work, when an individual can choose to relax, enjoy hobbies, or engage in any non-work activities.