Note: This Question Requires the Use of the Queueing Simulator

question 18

Multiple Choice

Note: This question requires the use of the Queueing Simulator spreadsheet in Excel. Use the queueing simulator to simulate a queueing system with 2 servers, exponential interarrival times with a mean of 20 seconds and constant service times of 35 seconds. Use a simulation run length of 10,000 arrivals. If you observe the system at a random time, what is the probability that there will be 3 or more customers waiting in line?

• A) 0.2
• B) 0.4
• C) 0.7
• D) 0.9
• E) 0.99

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Definitions:

Fixed Monthly Expenses

Regular expenses that do not vary in amount from month to month, such as rent and salaries.

Net Operating Income

A measure of a company's profitability from its regular, core business operations, excluding deductions of interest and taxes.

Contribution Margin Ratio

The percentage of each sale that remains after variable costs are deducted, indicating how much revenue is contributing to fixed costs and profit.

Operating Leverage

A measure of how sensitive a company's operating income is to a change in sales, reflecting the proportion of fixed costs in the company's cost structure.