The Owner of an Amusement Park Has Decided to Open

question 43

Multiple Choice

The owner of an amusement park has decided to open a second entry booth and hire another employee to service customers entering the park.Customers arrive at the rate of 20 per hour and will wait in a single line until one of the two employees is available to provide service.The average service time of both employees is 2 minutes to provide service.The arrival rate follows Poisson distribution,and the service time follows a negative exponential distribution.Determine the average number of customers waiting in the system.

• A)0.75
• B)0.89
• C)0.08
• D)0.98

---

Definitions:

Total Fixed Cost

The sum of all costs that remain constant regardless of the level of production or sales activity.

High-low Method

The high-low method is a way of estimating the fixed and variable components of a cost by using the highest and lowest activity levels and their corresponding costs.

Fixed Costs

Expenses that do not change with the level of goods or services produced by the business, such as rent and salaries.

Variable Costs

Costs that vary directly with the level of production or service volume.