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

Analyse Inflation, 1. how long will take to deliver a 3000-word assignmen. ...

1. how long will take to deliver a 3000-word assignmen. Must include reliable references.deadline 2nd sept 2. How much do you guys charge? Can I avail the 50% offer?Minimum 100 wo

Public Sector, What is top marginal rate of taxation?

What is top marginal rate of taxation?

Economic incidence of the tax on the consumers price, Suppose the demand fo...

Suppose the demand for bread is D(p), where dD/dp Illustrate equilibrium with price on the Y-axis and quantity on the X-axis in which the t > 0. Show the economic incidence

Seek the kingdom of god, What does it mean to seek the Kingdom of God in a ...

What does it mean to seek the Kingdom of God in a democratic capitalist economy? How can it be done?

plot the aggregate demand, The economy of Mainland has the following aggre...

The economy of Mainland has the following aggregate and aggregate supply schedules:                               Real GDP Demanded                         Real GDP Supplie

Accounting profit-economic profit of present value, 1. Christopher has $200...

1. Christopher has $200,000 to invest, and he is considering the following business opportunity. He would use his $200,000 to buy a mechanical self-service car wash. He'll earn $40

Value to change expect the market, You just inherited a house with a market...

You just inherited a house with a market value of $300,000, and do not expect the market value to change. Each year, you will pay $1,000 for utilities and $3,000 in taxes. You can

Evaluating legal prices, Evaluating Legal Prices: Collect information regar...

Evaluating Legal Prices: Collect information regarding the minimum wage. State the procedure of this legal price, assess its impact on the market for labor, and evaluate the extent

What is demand for money, Q. What is Demand for money? Demand for mone...

Q. What is Demand for money? Demand for money The demand for money depends negatively on R and positively on the Yin the IS-LM model As fo

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