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Problem 2. (15 pts) With the information given in Problem 1, the managers of the Administrative Services Office estimate that the time a student spends
Problem 2. (15 pts) With the information given in Problem 1, the managers of the Administrative Services Office estimate that the time a student spends waiting costs them (due to loss of goodwill, that is, students hate waiting in line before getting served) $10 per hour. To reduce the time a student spends waiting, they know that they need to improve Judy's processing time (see the last problem). 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 working in parallel serving a single queue, who will work at the same rate as Judy. If the computer costs $50 to operate per day, while the temporary clerk gets paid $70 per day, is Judy right to prefer the hired help? Assume Poisson arrivals and exponential service times
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