The Insurance Department at Shear's Has Two Agents,each Working at a Mean

question 9

Essay

The insurance department at Shear's has two agents,each working at a mean speed of eight customers per hour.Customers arrive at the insurance desk at a mean rate of one every six minutes and form a single queue.Management feels that some customers are going to find the wait at the desk too long and take their business to Word's,Shear's competitor.​
In order to reduce the time required by an agent to serve a customer,Shear's is contemplating installing one of two minicomputer systems: System A that leases for $18 per day and will increase an agent's efficiency by 25% or System B that leases for $23 per day and will increase an agent's efficiency by 50%.Agents work eight-hour days.​
If Shear's estimates its cost of having a customer in the system at $3 per hour,determine if it should install a new minicomputer system,and if so,which one?

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