Quick Clean Rooter Cleans Out Clogged Drains

question 56

Essay

Quick Clean Rooter cleans out clogged drains. Due to the competitive nature of the drain cleaning business, if a customer calls Quick Clean and finds the line busy, they immediately try another company and Quick Clean loses the business.
Quick Clean management estimates that on the average, a customer tries to call Quick Clean every three minutes and the average time to take a service order is 200 seconds. The company wishes to hire enough operators so that at most 4% of its potential customers get the busy signal.
a.How many operators should be hired to meet this objective?
b.Given your answer to a), what is the probability that all the operators are idle?

---

Definitions:

Loanable Funds Market

The market where savers supply funds for loans to borrowers. It's a conceptual framework for understanding the determination of the interest rate.

Equilibrium Interest Rate

The interest rate at which the demand for funds equals the supply of funds, balancing savings and investments in an economy.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity supplied.

Loanable Funds

The money available in the banking system for lending to businesses or consumers, influenced by interest rates and monetary policy.