Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the following Birth-Death process. In a barber shop, two barbers are working and on average it takes 45 minutes to do a hair

 

Consider the following Birth-Death process. In a barber shop, two barbers are working and on average it takes 45 minutes to do a hair cut, where these times are exponentially distributed. Potential customers arrive according to a Poisson process, with a rate of 2 potential customers per hour. When the potential customer sees no customers waiting, it surely enters the shop. If the potential customer sees k customers waiting, then the probability that he or she will enter the barber shop is 5-k. a. Model this as a continuous-time Markov chain. b. What is the probability that a potential customer will not enter the shop? 5 c. Suppose that a hair cut costs 25 and a barber costs 20 per hour. Should the owner of a barber shop hire a third barber, reduce the number of barbers to one or leave the situation as is?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Microeconomics

Authors: Hal R. Varian

9th edition

978-0393123975, 393123979, 393123960, 978-0393919677, 393919676, 978-0393123968

More Books

Students also viewed these Business Communication questions

Question

Describe what ERM (Enterprise Risk Management) entails.

Answered: 1 week ago