With a Single-Server Model,increasing the Arrival Rate by 10 Percent

question 26

Multiple Choice

With a single-server model,increasing the arrival rate by 10 percent and also increasing the service rate by 10 percent will result in

• A) an increase in the utilization of the server.
• B) an increase in the average number of customers in the system.
• C) a decrease in the average time spent in the system, including service.
• D) an increase in the waiting-line time.

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Definitions:

Strike Price

The specified price at which the holder of an option can buy (in the case of a call option) or sell (in the case of a put option) the underlying security.

Market Price

The ongoing price point for buying or selling a service or asset in the market.

Put Option

An agreement that allows the holder to sell a predetermined quantity of a particular asset at an agreed-upon price before a certain deadline, without being required to do so.

Exercise Price

The exact price at which an option's holder is allowed to purchase (for a call option) or sell (for a put option) the asset underlying the option.