As the Average Service Rate μ increases, the Shape of the Negative

question 65

Multiple Choice

As the average service rate μ increases, the shape of the negative exponential distribution of service times

• A) grows steadily steeper without limit
• B) has an ever steeper slope that eventually turns positive
• C) becomes less gently curved as it moves ever closer to the graph origin
• D) takes on a more uniform slope over a wide range of service times
• E) changes in appearance from convex to concave

---

Definitions:

Operating Cash Flow

Operating cash flow refers to the cash generated by a company's normal business operations, indicating whether a company is able to generate sufficient positive cash flow to maintain and grow its operations.

Variable Costs

Expenses that change in proportion to the amount of goods produced or the extent of services rendered.

Sales Quantity

The total number of units of a product sold in a particular period.

Fixed Costs

Expenses that are constant in total, regardless of changes in the volume of activity within a relevant period.