The associate dean of the college of business at Tech is determining which of two copiers he should lease for the college’s administrative suite. A regular copier leases for $8 per hour, and it takes an employee an average of 6 minutes (exponentially distributed) to complete a copying job. A deluxe, high-speed copier leases for $16 per hour, and it requires an average of 3 minutes to complete a copying job. Employees arrive at the copying machine at a rate of 7 per hour (Poisson distributed), and an employee’s time is valued at $10 per hour. Determine which copier the college should lease.

 LO.1