What factors determine whether a person chooses car or bus to travel to work? That is an interestingquestion. Suppose that you analyze this simple transportation problem using the probit model. Thevariables in the model are defined as follows:autotimecommute time via auto, minutescommute time via bus, minutes=(bus time - auto time)/10, 10 minute units= 1 if auto chosenbustimedtimeautoThe probit model you estimate isP(AUTO = 1) = ¤(ß1 + B2DTIME).The estimates of the parameters are: -0.0788 + 0.400DTIME.The marginal effect of increasing public (bus) transportation time, given that travel via publictransportation currently takes 15 minutes longer than auto travel isA) 0.348B) 0.139C) 0.307D) 0.123E) None of the above (A, B, C, D) is close to be correct.

Marginal effects let us know how a reliant variable (result) changes when a particular autonomous…

Answered: What factors determine whether a person…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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V5.
Consider a production system composed of 1 station at which arriving jobs are processed. The mean time between arrivals equals 5 minutes with a standard deviation of 2 minutes. The mean processing time of a job is 4 minutes, with standard deviation of 2 minutes. It is assumed that the queue has infinite capacity. a) Estimate the expected waiting time in queue. b) Estimate the expected number of jobs waiting in queue.
On a toll road, there are 2 lanes for drivers to pay their toll. Customer arrival times are constant, with a degenerate distribution. Service times are random, with an exponential distribution. What is the proper description for this queueing system?
A small bagel stand known as Andres by the Sea offers drive-thru service to customers in Sants Barbra. Andres by the Sea has two customers arrive every hour on average. Suppose that this bagel stand follows an M/M/1 FIFO queuing system with no limits on queue length. They have one employee working at all times that spends 15 minutes per customer. Assume that the employee is paid $10 per hour and a customer’s waiting cost in queue is estimated to be $12 per hour. The average number of customers in the queue (before rounding up), and the total cost per hour are: a. 0.4; $15. b. 0.8; $18. c. 0.6; $21. d. 0.3; $17. e. 0.5; $16.
Lambda Mu Probability system is empty Average number waiting for service in the queue Average number in system (queue and in service) Average time waiting for service (time in queue) vaiting time in system (waiting time plus service time) Probability arrival has to wait n= bability of n units in the system (queue and in service) 10 12 0.167 4.167 5.000 0.417 0.500 0.833 3 0.096
Consider a system of two infinite queues in series, where each service facility has a server. All service times are independent and have an exponential distribution with a mean of 3 min at facility 1 and 4 min at facility 2. Facility 1 has Poisson inputs with a mean rate of 10 per hour. Find the total expected number of customers in the system and the total expected waiting time (with service) for a customer.
48. Ships arrive at a port facility at an average rate of twoships every three days. On average, it takes a single crewone day to unload a ship. Assume that interarrival andservice times are exponential. The shipping companyowns the port facility as well as the ships using that facility. The companyestimates that it costs $1000 per dayfor each day that a ship spends in port. The crew servicing the ships consists of 100 workers, each of whom ispaid an average of $30 per day. A consultant has recommended that the shipping company hire an additional40 workers and split the employees into two equal-sizecrews of 70 each. This would give each crew an averageunloading or loading time of 1.5 days. Which crew arrangement would you recommend to the company?
Answer the following questions. Answers are listed at the end of this section.1. The queuing models assume that customers are served in what order?2. Consider two identical queuing systems except for the service time distribution. In the first system, the service time is random and Poisson distributed. The service time is constant in the second system. How would the waiting time differ in the two systems?3. What is the average utilization of the servers in a system that has three servers? On average, 15 customers arrive every 15 minutes. It takes a server exactly three minutes to wait on each customer.4. What is the expected waiting time for the system described in question 3?5. Firms that desire high service levels where customers have short wait times should target server utilization levels at no more than this percentage.
In queueing theory, λ represents the mean arrival rate; for example, the number of peoplearriving at the service counter per hour. What does 1/λ represent?o Service rateo Interarrival timeo Service time None
Bob runs a car oil change shop. His oil change crew can change the oil of a car in 10 minutes on average. Since he has only 1 oil change crew working on 1 oil change pit, only 1 car is processed at a time.Cars arrive at his oil change facility at the rate of 5.45 cars per hour. Assume the arrivals are Poisson distributed and the oil change service times by his crew follow an exponential distribution. Bob, after taking a class, has become interested in automation. He is thinking of investing in an automated robotic oil change unit that can replace his current crew. Bob learns that this automated robotic oil change machine takes precisely 10 minutes on every car to change the oil (i.e. there is no variability in this service time). Bob is a bit disappointed that this robotic oil change unit on average does not appear to be faster than his crew. Bob wants to reduce the customer waiting time at his shop. He wants you to help him figure out if the robotic oil change unit can reduce…
A small bank is trying to determine the number of tellers to employ. The total cost of employing a teller is $100 per day, and a teller can serve an average of 160 customers per day. On average, 210 customers arrive per day at the bank, and both service times and interarrival times are exponentially distributed. If the delay cost per customer day is $500, how many tellers should the bank hire? (The “MMs Template with Economic Analysis” is attached for you to do the calculation. Report your input and final answer in the exam template file.)
The manager of a bank wants to use an MyMys queueingmodel to weigh the costs of extra tellers against the costof having customers wait in line. The arrival rate is 60customers per hour, and the average service time is fourminutes. The cost of each teller is easy to gauge at the$11.50 per hour wage rate. However, because estimatingthe cost per minute of waiting time is difficult, the bankmanager decides to hire the minimum number of tellersso that a typical customer has probability 0.05 of waitingmore than five minutes in line.a. How many tellers will the manager use, given thiscriterion?b. By deciding on this many tellers as “optimal,” themanager is implicitly using some value (or some range of values) for the cost per minute of wait-ing time. That is, a certain cost (or cost range) would lead to the same number of tellers as sug-gested in part a. What is this implied cost (or cost range)?

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