Question: Please respond and answer thefollowing case study below: Case Study: Students arrive at the Administrative Services Office at an average of oneevery 15 minutes, and

Please respond and answer thefollowing case study below:

Case Study:

Students arrive at the Administrative Services Office at an average of oneevery 15 minutes, and their requests take on average 10 minutes to beprocessed.The service counter is staffed by only one clerk, Budi Aribowo,who works eight hours per day. Assume Poisson arrivals and exponential servicetimes.The managers of the Administrative Services Office estimate that thetime a student spends waiting in line costs them (due to goodwill loss and soon) $10 per hour.To reduce the time a student spends waiting, they know thatthey need to improve Budi's processing time. They are currently consideringthe following two options:

a)Install a computer system, with which Budi expects tobe able to complete the student request 40 percent faster (from 2 minutes perrequest to 1 minute and 12 seconds, for example).

b)Hire another temporary clerk, who will work at the samerate as Budi. If the computer costs $99.50 to operate per day, while thetemporary clerk gets paid $75 per day.

Is Budi right to prefer the hired help? Assume Poissonarrivals and exponential service times.

Thank you

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