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

Business economics, Critically evaluate measures used by governments and ce...

Critically evaluate measures used by governments and central banks to manage the economies of their countries. By critical evaluation use convincing arguments for or against measur

Price of its cabernet sauvignon, When Sonoma Vineyards reduces the price of...

When Sonoma Vineyards reduces the price of its Cabernet Sauvignon from $15 a bottle to $12 a bottle, the result is an increase in a. the demand for this wine b. the supply of

Describe the relation of money with wealth and income, Describe the relatio...

Describe the relation of money with wealth and income It is very possible to have a high income but no money and no wealth, or to be very wealthy and have a lot of money but no

Elucidate the rise in gdp, How much does GDP rise in each of the following ...

How much does GDP rise in each of the following scenarios: 1. During a recession, the government raises unemploymemnt benefits by $100 million. 2. A new US airline purchases

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?

Same Basket of Goods, assume the cost of a market basket in 2008 is 1717.0....

assume the cost of a market basket in 2008 is 1717.0. Calculate the cost of the same basket of goods and services in 2007. Price index in 2008 was 100 and price index in 2007 was

Derive the engel curve for shortbread cookies, Jen spends all her income on...

Jen spends all her income on shortbread cookies (S) and cupcakes (C). Her utility function is given by: U(S,C) = S +2C. Suppose that Jen has an income of $10 and that a cupcake cos

How did economists get it so wrong, Read "How Did Economists Get It So Wron...

Read "How Did Economists Get It So Wrong" by Paul Krugman and second, the blog "History of Economics Playground", by Pedro Duarte, Tiago Mata, Clement Levallois, Yann Grd...etc., t

Economy if price ceiling or price floor were removed, What is the impact on...

What is the impact on the economy if price ceiling or price floor were removed? Ans) Price ceiling is government system or laws setting price floors or ceilings that forbid the

Fdi inflows - an appraisal, FDI Inflows - An Appraisal: A comparison o...

FDI Inflows - An Appraisal: A comparison of the magnitude of FDI inflows received by India would appear too small, especially when compared to the inflows received by other co

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