What is probability the time between two successive calls, Macroeconomics

A one-car taxi company receives an average of 18 calls per day. The receptionist takes down details of the requested journey and relays them to the driver by radio. Each passenger's journey takes 25 minutes on average. The working day is 12 hours long.

(i) What constitutes the queue in this particular situation?

(ii) How long, on average, will a client have to wait between placing a pickup call and the arrival of the taxi?

(iii) During this waiting time, how many other clients on average will be picked up by the taxi? (Think about the number of people already waiting in queue when a customer arrives.)

(iv) List all the necessary assumptions for your calculations in (ii) and (iii). For each assumption, explain briefly whether you think they may or may not be realistic in this particular example.

(v) What is the probability that the time between two successive calls will exceed one hour?

(vi) What would your answer to (ii) be if the mean of the service time remains the same but the standard deviation is 15 minutes? What type of queuing system is this?

(vii) Based on observation, the more taxis a company operates, the more calls it receives. If the company operated a second car, what rate of calls would result in the same average waiting time as with one car? Express your answer in terms of the average interval between calls.

(viii) The annual costs of operating the company are as follows:

Office and receptionist (for either 1 or 2 cars) £30,000
Fixed costs per car (depreciation, tax etc.) £5,000
Drivers' wages £20,000

The variable costs per car (petrol etc.) are £18/day, when operating full-time.

For the one-car case described in (i)-(iv), and for the two-car case in (vii), calculate the average charge per client necessary to break even. Assume 300 working days per year.

Posted Date: 3/25/2013 2:28:23 AM | Location : United States







Related Discussions:- What is probability the time between two successive calls, Assignment Help, Ask Question on What is probability the time between two successive calls, Get Answer, Expert's Help, What is probability the time between two successive calls Discussions

Write discussion on What is probability the time between two successive calls
Your posts are moderated
Related Questions
The total value of loan in an economy is Rs. 400 million and the reserve ratio is 20 per cent. An enhance of Rs. 15 million in the money which the public keeps in commercial ba

The weights of a sample of five boxes being sent by FedEx are: 48, 24, 28, 12, and 40. (a) Compute the range. (b) Compute the mean deviation. (c) Compute the standard devi

One of the main tenets of economic analysis is that people act in their own narrow interests. Why, then, do people leave tips in restaurants? If a study were to compare the size of

1) The modern global economic system In finance we learn that while the future is always uncertain there are ways we gain insight and make the best possible investment decisi

Assume the United States has the following consumption information:                                     GDP = Income              Consumption

#“Nominal GDP declined between 2008 and 2009, therefore the GDP deflator must also have declined.”

What is gross domestic product Economic growth is most commonly calculated in terms of the annual percentage rate of change in real gross domestic product (GDP).

Doesn''t money move out of stock markets into bond? If more people buy bonds does this not push bond prices up and yields down? My question is about this quote from the Gardian tod

Explain about Economys growth rate Economy's growth rate: Long-term economic growth, or tendency growth, is the rate of growth the economy can sustain, ignoring the short-term

Last year, the nation of Tigerland imported goods totaling $500 million and exported products totaling $386 million. Tigerland experienced a(n).