Several hundred personal computers (PCs) are in use at the corporate headquarters for National Insurance Corporation. The

Question:

Several hundred personal computers (PCs) are in use at the corporate headquarters for National Insurance Corporation. The pattern of breakdowns for these PCs follows a Poisson with an average rate of 4.5 breakdowns per five-day work week. The company has a repair technician on staff to repair the PCs. The average time required to repair a PC varies somewhat, but takes an average of one day with a standard deviation of 0.5 days.
a. What is the average service time in terms of a five-day work week?
b. What is the standard deviation of the service times in terms of a five-day work week?
c. On average, how many PCs are either being repaired or waiting to be repaired?
d. On average, how much time transpires from the time a PC breaks down to the time it is repaired?
e. Suppose that National Insurance estimates it loses $40 a day in productivity and efficiency for each PC that is out of service. How much should the company be willing to pay to increase service capacity to the point where an average of seven PCs a week could be repaired?

Distribution
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