Use This Information to Answer the Following Questions -Refer to the Table

question 38

Multiple Choice

Use this information to answer the following questions.
$\begin{array}{l|c}\text { Number of Servers } & 1.0 \\\text { Arrival Rate } & 7.00 \\\text { Service Rate } & 10.00 \\\mathrm{P}(0) \text {, probability that there are no customers in the system } & 30 \% \\\mathrm{Lq} \text {, average length of the queue } & 1.63 \\\mathrm{~W} \text {, average time in the system } & 0.33 \\\mathrm{~L} \text {, average number of customers in the system } & 2.33 \\\mathrm{Wq}, \text { average time in the queue } & 0.23 \\\text { Utilization factor of the system } & 70 \% \\\hline\end{array}$

-Refer to the table.What is the average time a customer spends waiting in line and being served?

• A)0.23
• B)2.33
• C)0.33
• D)1.63
• E)0.70

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Definitions:

Capital Budgeting

The process by which investors and managers evaluate the long-term investments and projects of a company in terms of their potential profitability and benefits.

Probability Distribution

A probability distribution is a statistical function that describes all the possible values and likelihoods that a random variable can take within a given range.

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment or project, calculating the net difference between present value of cash inflows and outflows over a period.

IRR

Stands for Internal Rate of Return, a metric used in financial analysis to estimate the profitability of potential investments.