Exhibit 13.1 The Following Questions Are Based on the Output Below

question 1

Multiple Choice

Exhibit 13.1
The following questions are based on the output below.
A store currently operates its service system with 1 operator. Arrivals follow a Poisson distribution and service times are exponentially distributed. The following spreadsheet has been developed for the system.
-If a company adds an additional identical server to its M/M/1 system, making an M/M/2 system, what happens to a customer's average service time?

• A) increases
• B) decreases
• C) it is unchanged
• D) depends on the arrival rate

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Definitions:

Compounded Annually

This term describes interest on an investment that is calculated once a year, where the interest added also earns interest in subsequent years.

Withdrawals

Money taken out from a business by its owners for personal use.

Compound Interest

Interest calculated on the initial principal as well as the accumulated interest of previous periods of a deposit or loan.

Annual Payments

Regular payments made once a year, often used in the context of loans, insurance, or annuities.