The airport branch of a car rental company maintains a fleet of 15 SUVs. The inter-arrival time between requests for an SUV is 3 hours, on average, and the arrival follows Poisson distribution. Each arrival will request to rent just one SUV. If all SUVs are rented, customers are willing to wait until there is one available. An SUV is rented, on average, for 1 day, and follows an exponential distribution.

a) What is the average number of SUVs parked in the company's lot?

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b) What is the average time a customer has to wait to rent an SUV?

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c) A marketing survey shows that if the company reduces its daily rental price of $80 by $25, the average demand would increase to 10 rental requests per day (24 hours) and the average rental duration will become 1.2 days. The arrivals and renting time still follow Poisson and exponential distribution, respectively. Can this price decrease be justified? Provide an analysis.

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