A Distribution of Service Times at a Waiting Line Shows

question 25

Multiple Choice

A distribution of service times at a waiting line shows that service takes 6 minutes 30 percent of the time, 7 minutes 40 percent of the time, 8 minutes 20 percent of the time, and 9 minutes 10 percent of the time. This distribution has been prepared for Monte Carlo analysis. The first two random numbers drawn are 23 and 74. The simulated service times are ________ minutes, then ________ minutes.

• A) 6; 8
• B) 7; 7
• C) 7; 8
• D) 8; 9
• E) Cannot determine because no service time probability is that large.

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Definitions:

Interest Rate

The amount charged by a lender to a borrower for the use of assets, usually expressed as a percentage of the principal.

Monthly Payment

Periodic payments made towards loans, typically calculated monthly, covering interest and principal repayment.

Rate of Return

The rate of return is a measure of the profitability of an investment, calculated as the percentage of the total amount of returned income to the amount of the investment’s initial cost.

Annual Dividend

An annual profit sharing from a corporation to its shareholders, usually in the form of a payment.