Examlex
A crew of mechanics at the Highway Department Garage repair vehicles that break down at an average of λ = 7 vehicles per day (approximately Poisson in nature). The mechanic crew can service an average of μ = 11 vehicles per day with a repair time distribution that approximates an exponential distribution.
(a) What is the utilization rate for this service system?
(b) What is the average time before the facility can return a breakdown to service?
(c) How much of that time is spent waiting for service?
(d) How many vehicles are likely to be waiting for service at any one time?
Critical Value
A threshold in statistics that a test statistic must exceed to reject a null hypothesis; it delineates the boundaries of the critical region.
Variances
The differences between planned or expected results and actual outcomes in budgeting and accounting.
Material Price Variances
The difference between the actual cost of materials and the expected or budgeted cost of materials in production processes.
Materials Account
An account used to track the costs of raw materials that are either in stock or being used in production processes.
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