2 The managers of the Administrative Services Office estimate that the time a student spends waiting in line costs them (due to goodwill loss and so on) $10 per hour. To reduce the time a student spends waiting, they know that they need to improve Judy's processing time (see Problem 1). They are currently considering the following two options:

a. Install a computer system, with which Judy expects to be able to complete a student request 40 percent faster (from 2 minutes per request to 1 minute and 12 seconds, for example).

b. Hire another temporary clerk, who will work at the same rate as Judy. If the computer costs $99.50 to operate per day, while the temporary clerk gets paid $75 per day, is Judy right to prefer the hired help? Assume Poisson arrivals and exponential service times.