A Distribution of Service Times at a Waiting Line Indicates

question 67

Multiple Choice

A distribution of service times at a waiting line indicates that service takes 12 minutes 30 percent of the time and 14 minutes 70 percent of the time. In preparing this distribution for Monte Carlo analysis, the service time 13 minutes would be represented by what random number range?

• A) 00 through 29
• B) 01 through 30
• C) 30 through 99
• D) 31 through 00
• E) None of these; 13 minutes is not a possible outcome.

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Definitions:

Fixed Costs

Expenses that remain constant regardless of production or sales volume in the short term, like lease payments or wages.

Relevant Range

The range of activity within which the assumptions about cost behavior hold true for a specific operation or business.

Merchandising Company

A company that purchases goods in a finished state for the purpose of reselling them without further manufacturing.

Cost Structure

Cost structure denotes the various types of expenses a business incurs and is typically categorized into fixed and variable costs, influencing pricing and profitability.