Mid-term Part B - Question 1 1. At a movie theater...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1. At a movie theater customers arrive at the rate of 1 every minute. The ticket seller averages 30 seconds per customer. a. What is the average customer time in the system? b. What is the average customer time in line? c. What is the average number of customers in line? d. What is the probability that the ticket taker is idle? a. L s = 1/(2-1) = 1 customer W s = 1/1 = 1 minute - the average customer time in the system b. L q = 1 2 /2(2-1) = 1/2 = 0.5 customers W q = 0.5/1 = 0.5 minute = 30 seconds - the average customer time in line c. L q = 1 2 /2(2-1) = 0.5 customers - the average number of customers in line d. The probability that the ticket taker is idle is the same as the probability that there is no customers in the system therefore: P 0 = (1-1/2) = 1/2 = 0.5 = 50% Question 2 1. A company owns a lease granting it the right to explore for oil on a property. The company may sell the lease for $50,000, or they may drill. Four possible outcomes are listed below, together with probabilities and payouts. Should the company sell the lease or drill? Outcome Probability Payoff
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/20/2011 for the course ACCOUNTING 2302 taught by Professor Adams during the Spring '11 term at University of Houston.

Page1 / 3

Mid-term Part B - Question 1 1. At a movie theater...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online