A Waiting-Line System That Meets the Assumptions of M/M/1 Has

question 128

Multiple Choice

A waiting-line system that meets the assumptions of M/M/1 has λ = 1, μ = 4. For this system, the probability of more than two units in the system is approximately

• A) zero
• B) 0.015625
• C) 0.0625
• D) 0.25
• E) 0.9375

---

Definitions:

Redeemed

The process of exchanging a financial security or voucher for cash, goods, or services.

Callable Bonds

Bonds that can be redeemed by the issuer before their maturity date at a specified call price, often to take advantage of declining interest rates.

Noncallable Bonds

Bonds that cannot be redeemed by the issuer before their maturity date, providing certainty to investors regarding the bond's interest payments and return of principal.

Issuing Corporation

A legal entity that offers its securities for sale to the public, typically through a stock exchange.