Question: ( 1 ) A decision to purchase one of two machines is to be made. Machine 1 has a processing rate of transactions / hour

(1) A decision to purchase one of two machines is to be made. Machine 1 has a processing rate of transactions/ hour and it costs B dollars/hour to operate; machine 2 is twice as fast but costs twice as much to operate. Suppose that transactions arrive at the system according to a Poisson process of rate and that the transaction processing times are exponentially distributed. The total cost of the system is the operation cost plus a cost of A dollars for each hour a customer has to wait.
(a) Find expressions for the total cost per hour for each of the systems.
(b) If A= B/10, for what range of arrival rates is machine 1 cheaper? Repeat for A =10B.

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