Exhibit 12.5 The Following Questions Use the Information Below

question 72

Multiple Choice

Exhibit 12.5
The following questions use the information below.
The owner of Sal's Italian Restaurant wants to study the growth of his business using simulation. He is interested in simulating the number of customers and the amount ordered by customers each month. He currently serves 1000 customers per month and feels this can vary uniformly between a decrease of as much as 5% and an increase of up to 9%. The bill for each customer is a normally distributed random variable with a mean of $20 and a standard deviation of $5. The average order has been increasing steadily over the years and the owner expects the mean order will increase by 2% per month. You have created the following spreadsheet to simulate the problem.
-In the Kendall notation M/D/4, D stands for

• A) memoryless arrival distribution
• B) deterministic departure distribution
• C) memoryless arrival and departure distributions
• D) none of the above

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Definitions:

Long-run Equilibrium

A state where all factors of production and outputs are variable, and economic agents have fully adjusted to any changes, leading to no further tendency for change.

Demand

Refers to the quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.

Pigeon Pies

A traditional British dish made using pigeon meat, often encased in pastry and baked.

Output

The complete volume of products or services generated by a business, sector, or economic structure.