If a Service Facility Changes from a First-Come, First-Served Basis

question 8

Multiple Choice

If a service facility changes from a first-come, first-served basis to a random basis in selecting the next customer to be served, one should expect average customer waiting time to:

• A)decrease slightly.
• B)remain constant.
• C)increase slightly.
• D)increase dramatically.

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Definitions:

Beta

Beta is a measure of a stock's volatility in relation to the overall market, indicating the stock's risk compared to the market risk.

Systematic Risk

The risk inherent to the entire market or market segment, representing factors that affect all companies such as economic, political, or social changes.

Diversifiable Risk

The portion of an investment's risk that can be reduced or eliminated through portfolio diversification, also known as unsystematic risk.

Unsystematic Risk

The type of risk that is unique to a specific company or industry, unpredictable and can be mitigated through diversification.