Exhibit 12-3 a Credit Union Has a Small Branch in Which a Which

question 1

Essay

Exhibit 12-3
A Credit Union has a small branch in which a single customer service representative serves the needs of customers who arrive at an average rate of 24 per hour. The service representative can typically handle 30 customers per hour. Based on an analysis of historical data, it is reasonable to assume that customer interarrival times and service times are exponentially distributed. Assume that all arriving customers enter the branch, regardless of the number already waiting in line.
-Refer to Exhibit 12-3.What is the average length of time (in hours)spent waiting in line

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Definitions:

Net Capital Outflow

The difference between the domestic purchase of foreign assets and the foreign purchase of domestic assets.

Loanable Funds

The total amount of funds available in the financial markets for borrowing, which determines the market interest rates.

U.S. Grocery Chain

A set of related supermarkets or grocery stores operating under a similar brand or management in various locations across the United States.

Warehouse

A warehouse is a large building where goods are stored before they are distributed for sale or further processing.