A Crew of Mechanics at the Highway Department Garage Repair

question 45

Essay

A crew of mechanics at the Highway Department garage repair vehicles that break down at an average of λ = 8 vehicles per day (approximately Poisson in nature).The mechanic crew can service an average of μ = 10 vehicles per day with a repair time distribution that approximates an exponential distribution.
a.What is the probability that the system is empty?
b.What is the probability that there is precisely one vehicle in the system?
c.What is the probability that there is more than one vehicle in the system?
d.What is the probability of 5 or more vehicles in the system?

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Definitions:

Variable Cost

Expenses that change in proportion to the activity of a business.

Net Present Value

The calculation of the present value of an investment's expected earnings, minus the initial capital outlay.

Net 30 Credit Policy

A payment term that allows a buyer 30 days to pay the invoice in full from the invoice date.

Monthly Interest Rate

The interest rate charged on a loan or realized on an investment over a one-month period.