Define operating characteristics of computer repair facility

Assignment Help Basic Statistics

Reference no: EM131930321

Question: Julian Argo is a computer technician in a large insurance company. He responds to a variety of complaints from agents regarding their computers' performance. He receives an average of one computer per hour to repair, according to a Poisson distribution. It takes Julian an average of 50 minutes to repair any agent's computer. Service times are exponentially distributed.

(a) Determine the operating characteristics of the computer repair facility. What is the probability that there will be more than two computers waiting to be repaired?

(b) Julian believes that adding a second repair technician would significantly improve his office's efficiency. He estimates that adding an assistant, but still keeping the department running as a single-server system, would double the capacity of the office from 1.2 computers per hour to 2.4 computers per hour. Analyze the effect on the waiting times for such a change and compare the results with those found in part (a).

(c) Insurance agents earn $30 for the company per hour, on average, while computer technicians earn $18 per hour. An insurance agent who does not have access to his computer is unable to generate revenue for the company. What would be the hourly savings to the firm associated with employing two technicians instead of one?

Reference no: EM131930321

Questions Cloud

What is the purpose of export intermediaries : What is the purpose of export intermediaries? How can an export intermediary avoid circumvention by a client or customer?

Marketing plan components outlines the product : Which of the following marketing plan components outlines the product, pricing, and market segment targets?

Indifferent between gamble and actuarial value of gamble : Analytically derive the value of risk premium that must be added to gamble to make the agent indifferent between the gamble and actuarial value of gamble?

Is installation of the new equipment economically feasible : Carlos Gomez is the receiving supervisor for a large grocery store. Trucks arrive to the loading dock at an average rate of four per hour.

Define operating characteristics of computer repair facility : Determine the operating characteristics of the computer repair facility. What is the probability that there will be more than two computers waiting to be repair

An investor buy two call options and two put options : An investor buy two call options and two put options on the same security. What can you say about that person ?

Is the given approach more cost-effective : Julian is considering putting the second technician in another office on the other end of the building, so that access to a computer technician.

True of project with positive net present value : Which of the following statements is true of a project with a positive net present value (NPV)?

What is the project discounted payback : What is the project's discounted payback? What is the project's payback?

User Account

All Pages