# Follows a poisson distribution while the service time

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follows a Poisson distribution, while the service time follows an exponentia distribution. The average arrival rate is 16 per hour and the average service time is three minutes. (a) What is the average number of cars in the line? (b) What is the average time spent waiting to get to the service window? (c) What percentage of time is the dry cleaner's drive - thru window idle? (d) What is the probability there are more than 2 cars at the drive - thru window? A-9
4) The Saussy Lumber Company ships pine flooring to three building supply houses from its mills in Pineville, Oak Ridge, and Mapletown. Determine the best transportation schedule for the data given in the table using Vogel's Approximation method. To Supply House 1 Supply House 2 Supply House 3 Mill Capacity (Tons) F ROM Pineville \$3 \$3 \$2 25 Oak Ridge \$4 \$2 \$3 40 Maple town \$3 \$2 \$3 30 Supply House Demand (Tons) 30 30 35 95 A-10
5) The ABC Co. is considering a new consumer product. They believe there is a probability of 0.4 that the XYZ Co. will come out with a competitive product. If ABC adds an assembly line for the product and XYZ does not follow with a competitive product, their expected pro fi t is \$40,000; if they add an assembly line and XYZ does follow, they still expect a \$10,000 pro fi t. If ABC adds a new plant addition and XYZ does not produce a competitive product, they expect a pro fi t of \$600,000; if XYZ does compete for this market, ABC expects a loss of \$100,000. (a) Determine the expected monetary value (EMV) of each decision. (b) Determine the Expected opportunity loss (EOL) of each decision. (c) Compare the results of (a) and (b). (d) Calculate the Expected Value of Perfect Information (EVPI). A-11
Answer Key Testname: FINAL EXAM 1) (a) Y = 110.47 + 16.83 X (b) \$16.83 (c) Yes, because the p - value for the F - test is low. (d) 48.3% of the variation in medical expenses is explained by family size. (e) The null hypothesis can be rejected, the slope is not equal to zero based on the low p - value. (f) 0.695 2) 3) (a) L q = 3.2 (b) Wq = 0.2 hour (12 minutes) (c) P o = 0.20 (d) P n > k = 0.512 A-12
Answer Key Testname: FINAL EXAM 4) (a) Let X 1 = number of liver - flavored biscuits in a package X 2 = number of chicken - flavored biscuits in a package Minimize X 1 + 2X 2 Subject to: X 1 + X 2 40 2X 1 + 4X 2 60 X 1 15 X 1 , X 2 0 (b) Corner points (0,40) and (15,25) Optimal solution is (15,25) with cost of 65. (c) 2X 1 + 4X 2 60 is redundant. (d) minimum cost = 65 cents 5) (a) (b) (c) The plant addition is best for both models. The maximum EMV alternative is always the same as the minimum EOL alternative. (d) EVPI = 44,000 A-13
Part (I): MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
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