+1-415-670-9189
info@expertsmind.com
Problem on standard deviation
Course:- Macroeconomics
Reference No.:- EM1362




Assignment Help
Assignment Help >> Macroeconomics

Question:The airport branch of a car rental company maintains a fleet of 50 SUVs. The interarrival time between requests for an SUV is 2.4 hours, on average, with a standard deviation of 2.4 hours. There is no indication of a systematic arrival pattern over the course of a day. Assume that, if all SUVs are rented, customers are willing to wait until there is an SUV available. An SUV is rented, on average, for 3 days, with a standard deviation of 1 day.

a. What is the average number of SUVs parked in the company's lot?

 b. Through a marketing survey, the company has discovered that if it reduces its daily rental price of $80 by $25, the average demand would increase to 12 rental requests per day and the average rental duration will become 4 days. Assuming that the std. dev. values stay unchanged, should this company adopt this new pricing policy? Provide an analysis!

c. What is the average time a customer has to wait to rent an SUV? Please use the initial parameters rather than the information in (b).

d. How would the waiting time change if the company decides to limit all SUV rentals to exactly 4 days? Assume that if such a restriction is imposed, the average interarrival time will increase to 3 hours, with the standard deviation changing to 3 hours. 




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Macroeconomics) Materials
Find the proportions of consumption spending and investment spending in US GDP. What proportion of US GDP is comprised of wages. The information can be found at the BEA websit
Assume Helen's income increased from $30,000 per year to $45,000 per year and Helen\'s crab meat consumption went from 25 pounds per year to 30 pounds per year.
To invest in upgrades to your company’s heating , you borrow $165,000 from a local bank. If the bank asks you repay the loan in 15 equal annual installments of $19,500, determ
You seriously doubt that a material weakness would have been found if time had permitted a more thorough audit. Management's written assessment concludes that the entity's I
A newspaper has a monopoly on the local news market in a town. The market demand is given by P=1.70-Q/10,000. The marginal cost is constant and equal to 0.30. The fixed cost
Describe the strengths and weaknesses that you see in these economies based on these variables. Write 1 to 3 paragraphs of analysis total (100 to 300 words). What conclusions
Draw the relavant isoquant map and isocost line if the cost of labor is $4 per work-hour and the cost of glass is $4 per pound and 90 light bulds are to be produced. What is t
1. Consider a competitive market with a PMB = 22 - q and a PMC = 10 +q. There is a negative production externality of e = q, where q is the level of output in the market, th