Exhibit 13.1 The Following Questions Are Based on the Output Below

question 48

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.
-Refer to Exhibit 13.1. What is the probability that a customer must wait in queue before being served?

• A) 0.00
• B) 0.25
• C) 0.75
• D) 1.00

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Definitions:

Straight-Line Depreciation

A method of allocating the cost of a fixed asset evenly across its useful life.

Net Working Capital

The discrepancy between what a company owns in current assets and owes in current liabilities, showing its financial stability in the short term.

Required Rate

The minimum expected return by investors to make an investment worthwhile, considering the risk involved.

CCA Class

Pertains to a classification system for tax purposes, grouping assets with similar characteristics for capital cost allowance claims in Canada.