How many customers are expected to be lost per hour

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Rockies Adventure Wear, Inc., sells athletic and outdoor clothing through catalogue sales. Its managers want to upgrade their order-processing centre so that thev have less chance of losing customers by putting them on hold. The upgrade may result in a processing capacity of 30, 40, 50, or 60 calls per hour with the probabilities of 0.2, 0.4, 0.3, and 0.1, respectively. Alarket research indicates that the average number of calls that Rockies may receive is 50 per hour.

(a) How many customers are expected to be lost per hour due to the lack of processing capacity?

(b) What is the variance of the loss due to the lack of processing capacity?

Reference no: EM131374847

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