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Question 5 Purple Rose is an ATV rental shop located near a resort, which rents out ATVs to guests stay in the resort. When a
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Purple Rose is an ATV rental shop located near a resort, which rents out ATVs to guests stay in the resort. When a customer requests to rent an ATV and no ATVs are available they are either with another customers or being cleaned for rental customer waits until an ATV is available. Once an ATV is rented out to a customer, the customer keeps it for an average of hour ie minutes Upon return, the ATV is cleaned and tunedup which takes about minutes.
Suppose Purple Rose has ATVs, and demand for ATV rental is per hour. What is the average amount of time a customer waits to receive an ATV?
Hint: From the perspective of customer waiting time, minutes of cleaning time would be part of "processing time". Assume CVa in your calculations
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