Exhibit 12.5 The Following Questions Use the Information Below

question 8

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.
-Joe's Copy Center has 10 copiers. They break down and require service quite often. Time between breakdowns follows an exponential distribution for each copier. The repair person services machines as quickly as possible, but the service time follows an exponential distribution. What type of system is it?

• A) M/M/1 with Finite Population
• B) M/M/1 with Finite Queue
• C) M/M/1
• D) M/M/10

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Definitions:

Petty Cash Fund

A small amount of cash kept on hand for minor or incidental expenses within a business.

Journal Entry

A record in accounting that represents a transaction and its effects on various accounts, typically involving at least one debit and one credit.

Cash Short and Over

An account that tracks discrepancies between the expected cash amounts and the actual cash counted, indicating shortages or overages.

Bank Account Reconciling

The process of comparing and matching figures from the accounting records against those presented on a bank statement to ensure they are in agreement and accurate.