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Virginia's Ron McPherson Electronics Corporation retains a service crew to repair machine breakdowns that occur on average λ = 3 per 8-hour workday (approximately Poisson in nature). The crew can service an average of μ = 8 machines per workday, with a repair time distribution that resembles the negative exponential distribution.
a) What is the utilization rate of this service system?
b) What is the average downtime for a broken machine?
c) How many machines are waiting to be serviced at any given time?
d) What is the probability that more than 1 machine is in the system? The probability that more than 2 are broken and waiting to be repaired or being serviced? More than 3? More than 4?
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Lastly, for investors who worry about management changes, there is a solution: index funds. These mutual funds by stocks and bonds that track a benchmark index like the S&P 500 rather than relying on star managers to actively pick securities. In..
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