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Mid-term Part B

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

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Question 1 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?

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

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