The Bank Manager of a Busy Downtown Location Found Herself

question 44

Multiple Choice

The bank manager of a busy downtown location found herself unable to find good teller help so she invested in an ATM to handle the routine withdrawals that tended to occupy an inordinate amount of the teller's time. Before she installed the ATM she found that customers were arriving on average every 2 minutes (Poisson distributed) and it took a teller 30 seconds (exponentially distributed) to process their request. The ATM is able to maintain a constant 30 second service time. What is the impact on the number of customers waiting in line?

• A)There is no change.
• B)The ATM line is half as long as the teller line.
• C)The ATM line is twice as long as the teller line.
• D)The ATM line is 25% shorter than the teller line.

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Definitions:

Converted

In legal and financial contexts, this refers to the change of one form of property or asset to another, such as converting bonds to stocks or a commercial building to residential use.

Indorser

A person who signs their name on a financial document, thereby transferring their rights in the document to another party.

Good Faith

Displaying truthfulness and genuineness without aiming to mislead or cheat.

Holder in Due Course

A legal term for an entity that has acquired a negotiable instrument in good faith and for value, thus having certain protections against defenses and claims that could be made against the instrument.