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:

Expected Rate

The anticipated return on an investment, considering the probability of various outcomes.

Interest Rate

The cost of borrowing money or the reward for saving, typically expressed as a percentage of the principal amount per period.

Expected Rate

A statistical measure often used to indicate the anticipated return or performance of an investment or economic variable over a specific period.

Total Investment

The aggregate amount of money dedicated to the purchase of assets, stocks, bonds, property, or other investment vehicles with the potential for generating profit or income.