Which of the Following Statements Is FALSE About Finite Population

question 1

Multiple Choice

Which of the following statements is FALSE about finite population queuing model?

• A)Arrival rates have a Poisson distribution.
• B)Services time has a negative exponential distribution.
• C)Length of the queue has an impact on the arrival rate.
• D)Arrival rate is independent of the length of the queue.

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Definitions:

Coase Theorem

The Coase Theorem posits that if trade in an externality is possible and there are no transaction costs, bargaining will lead to an efficient outcome regardless of the initial allocation of property.

Externality Problems

Occurrences in which the production or consumption of goods and services imposes costs or benefits on third parties not involved in the transaction.

Government Intervention

The involvement by government in the market to influence the allocation of resources and distribution of income.

Coase Theorem Solution

A theory suggesting that if trade or negotiation over property rights is allowed without cost, parties can reach an agreement regarding the allocation of resources regardless of the initial allocation.