Neve Commercial Bank Case Analysis

1.Neve Commercial Bank is the only bank in the town of York, Pennsylvania. On a typical Friday, an average of 10 customers per hour arrive at the bank to transact business. There is currently one teller at the bank, and the average time required to transact business is 4 minutes. It is assumed that service times may be described by the negative exponential distribution. If a single teller is used, find the following details:

oThe average time in the line.

oThe average number in the line.

oThe average time in the system.

oThe average number in the system.

oThe probability that the bank is empty.

2.CEO Benjamin Neve is considering adding a second teller (who would work at the same rate as the first) to reduce the waiting time for customers. A single line would be used, and the customer at the front of the line would go to the first available bank teller. He assumes that this will cut the waiting time in half. If a second teller is added, find the new answers to parts 1 to 5.