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




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
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
Analyze in detail using graphical tools what would happen to the number of firms and firm profitability in short run and long run if demand for product falls and if it rises.
suppose the firm is facing an output constraint - specifically , the maximum allowable output is 480 units - that is Q
Assume now that the government decides to change the program and offers an overall subsidy of 15 to anyone working at least 5 hours per day. Answer questions a) andb) under
Since identifying the M D curve is difficult, the overnight interest rate is often used as the primary method of implementing monetary policy, whereas the money sup
What happened to the elasticity of demand for American cars when the Japanese developed a strong auto industry? What happened to the elasticity of demand for American autowork
Who are the 1st responders? What are their responsibilities? What will be their biggest challenge? What will is an immediate concern and what can wait? What additional types o
a) Briefly describe the theoretical relationship between money supply and inflation. b) Discuss the main limitations of applying credit control instruments in a developing eco
Increased use of vehicle identification numbers on automobiles was encouraged by insurance companies because of their impact on the market for stolen cars. Which aspect of t