What is probability the time between two successive calls, Macroeconomics

Assignment Help:

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.


Related Discussions:- What is probability the time between two successive calls

#title.homework help, 1) Why does the adoption of Keynesian economics come ...

1) Why does the adoption of Keynesian economics come out of the Great Depression? 1) Why does the adoption of Keynesian economics come out of the Great Depression? 2) What will ha

Explain the excise terms of tax, Explain the excise terms of tax. The e...

Explain the excise terms of tax. The excise terms of tax: a. Tax incidence b. Excess burden c. Deadweight loss d. Tax revenue

Sustainability of current account deficit, Sustainability of Current Accoun...

Sustainability of Current Account Deficit: Theoretically speaking, a current account deficit can be sustained as long as the growth rate of national income exceeds the rate of

Illustrate the says law, Q. Illustrate the Says Law? With Say's Law, ag...

Q. Illustrate the Says Law? With Say's Law, aggregate demand would always be equal to aggregate supply and cross model would be incorrect.  Keynes's argument as to why Say's

Unemployment, Assume an economy that is operating above full employment. A....

Assume an economy that is operating above full employment. A. Draw a correctly labeled AD/AS graph showing: i. the problem in the economy ii. current price level and output iii. fu

Is household savings depend on gdp in the cross model, Q. Is Household savi...

Q. Is Household savings depend on GDP in the cross model? Household savings depends on Y since S H = Y - C - NT and C and NT both rely on Y. How it depends on Y can't be concl

Money, nature, development and function of money.

nature, development and function of money.

What are the contents in the market strikes back, What are the contents in ...

What are the contents in the market strikes back? a. Price controls • Price ceiling • Price floor b. Quantity controls quota c. Excise tax d. Inefficiency

Mec, Lucas’ point of view, what are the limitations of the Keynesian model?...

Lucas’ point of view, what are the limitations of the Keynesian model? What improvements does he suggest?

Tariffs & quotas, the suitability of utilising a policy of tariffs and quot...

the suitability of utilising a policy of tariffs and quotas given the case of perfect competition.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd