A Queuing Model Which Follows the M/M/1 Assumptions Has λ

question 55

Multiple Choice

A queuing model which follows the M/M/1 assumptions has λ = 10 and μ = 12. The average number in the system is

• A) 0.83
• B) 2
• C) 2.5
• D) 5
• E) 6

---

Definitions:

Incremental Analysis

Incremental Analysis is a decision-making tool used to compare the additional costs and benefits of one option over another, ignoring costs and benefits that are unchanged between options.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent and salaries.

Variable Departmental Costs

Costs that vary directly with the level of output or activity within a specific department of a company.

Incremental Profit

The additional profit derived from making changes to the business operations, such as increasing production or sales.