Question
A company has started a phone service that uses overseas doctors to provide emergency medical consultations. The responding doctors are based in a country with
A company has started a phone service that uses overseas doctors to provide emergency medical consultations. The responding doctors are based in a country with low wages but with a highly skilled pool of physicians. Responding to each call takes, on average, 15 minutes. At any given time, there are 4 doctors overseas on duty. Calls arrive every 5 minutes on average (standard deviation is 5 minutes). The company receives $50 from the patient's insurance company for each consultation. If one of the 4 overseas doctors is available, the firm pays $20 to the doctor and makes $30 in profit. If no doctor is available overseas, the call is rerouted to the U.S. where a local physician answers the question. A local physician is always available to take a call. In this case, the firm pays the $50 to the local physician, so there's no profit for the company.[10 points]
a)What is the probability of a call being answered by a physician in the U.S.? (Round to four decimal places)
b)What would be the additional revenue per hour obtained if the company managed to have 10 doctors overseas on duty at any given time?
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