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:

Market Efficiency

A financial market theory suggesting that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns.

Insider Trading

The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.

Security Prices

The market value for tradable financial instruments such as stocks, bonds, and derivatives at any given time.

Efficient-Market Hypothesis

The theory that all available information is already reflected in securities prices, therefore making it impossible to consistently achieve higher returns than the overall market.