Use This Information to Answer the Following Questions

question 21

Essay

Use this information to answer the following questions.
Cars arrive at Speedy Lube at an average rate of 4 per hour.Arrivals can be assumed to follow the Poisson distribution.The sole mechanic who works at Speedy Lube spends an average of 12 minutes changing each car's oil and filter.The standard deviation of service time is 2 minutes and service time distribution is arbitrary.
-Refer to the information above.Assume that Speedy Lube has been acquired by a new owner who is planning an advertisement campaign that claims that each car would spend an average of 20 minutes in the shop inclusive of waiting time and service time.What should the mechanic's service rate be so as not to accuse the new owner of False advertising? Hint: Use Excel's Goal Seek function.

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Definitions:

Hyperinflation

A very high and typically accelerating rate of inflation, often exceeding 50% per month, leading to a rapid erosion of real value in the local currency.

Depression

A severe and prolonged downturn in economic activity, characterized by significant declines in GDP, high unemployment, and deflation.

Money Demand

The total amount of money that households and businesses want to hold at any given time, depending on interest rates, income levels, and economic activity.

Price Level

An index that measures the average of prices of goods and services in an economy, often used to evaluate inflation or deflation.