A Single-Phase Waiting-Line System Meets the Assumptions of Constant Service

question 61

Multiple Choice

A single-phase waiting-line system meets the assumptions of constant service time or M/D/1. Units arrive at this system every 10 minutes on average. Service takes a constant 8 minutes. What is the average number in the system, L_s, in units?

• A) 1.60
• B) 2.40
• C) 0.80
• D) 1.33
• E) -3.13

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Definitions:

Investment Growth

The increase in the value of an investment, accomplished through rising asset prices and reinvestment of dividends or interest.

Efficient Frontier

A concept in modern portfolio theory representing the set of portfolios that offers the highest expected return for a defined level of risk or the lowest risk for a given level of expected return.

Risk Tolerance

The level of fluctuation in the returns on investments that an investor can tolerate.

Risk Aversion

A characteristic or trait describing investors who prefer lower returns with known risks rather than higher returns with unknown risks.