Barber College Is the Best Deal in Town! for Only

question 51

Multiple Choice

Barber College is the best deal in town! For only $5, you can get a shampoo and cut by any one of four untrained stylists completed in 7.5 minutes on average. Perhaps this is why customers show up on average two minutes apart (both arrival times and service times are exponentially distributed) . Management is concerned about the waiting time for customers and decides to train one more student. If the arrival and service rates remain the same as in the original scenario, what happens to the number of customers in the system?

• A)There are about half as many as in the original scenario.
• B)There are about a third as many as in the original scenario.
• C)There are about a fourth as many as in the original scenario.
• D)There are about a fifth as many as in the original scenario.

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Definitions:

Book Depreciation

The method used by businesses to allocate the cost of a physical asset over its useful life for accounting and tax purposes.

Tax Rate

The percentage at which an individual or corporation is taxed, often varying by income or profits.

Income Taxes Payable

The amount of income tax a company owes to the government but has not yet paid.

Book Income Before Income Tax

The income reported in financial statements before the effect of income taxes, reflecting the financial performance from core operation and non-operational activities.