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

Climate and terrain in several south american countries, Climate and terrai...

Climate and terrain in several South American countries are conducive to growing coffee efficiently. While other countries can grow coffee, they are not as efficient and effective

Artificial intelligence and neural networks, Problem >> Explore the rel...

Problem >> Explore the relationship between Artificial intelligence and Neural networks. The systems which use this type of intelligence are known as artificial intelligent

Business cycle, Analyse the effect of contraction phase to the vunerable

Analyse the effect of contraction phase to the vunerable

What is the marginal product, What is the marginal product? The margina...

What is the marginal product? The marginal product of an input is the extra quantity of output which is generated by using one more unit of which input. Marginal product of

Factors responsible for changes in aggregate demand, Factors Responsible fo...

Factors Responsible for changes in Aggregate Demand The Aggregate Demand curve shows an inverse relationship between the quantity of goods and services demanded and the price l

Keynesian, critically examine the keynesian theory of unemployment

critically examine the keynesian theory of unemployment

Estimate the length of pipe, Engineers sometimes add chlorine to pipes to d...

Engineers sometimes add chlorine to pipes to disinfect water. It is desired to achieve four logs of kill. This means that the effluent concentration of microorganisms is 10 -4 tim

Explain the says law, Q. Explain the Says Law? GDP, and Say's Law ...

Q. Explain the Says Law? GDP, and Say's Law Aggregate supply Y S = f(L, K) in the classical model where L is concluded in the labor market while K is

Discuss about the keynesian economists, Discuss about the Keynesian economi...

Discuss about the Keynesian economists The Keynesian economist A. W. Phillips developed short-run Phillips curve analysis in the 1950s. Phillips had researched the relationshi

How can an economic development be measured, How can an economic developmen...

How can an economic development be measured? The UN has developed an extensively accepted set of indices to measure development in opposition to a mix of composite (element or

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