Question: The Decision Sciences Department is trying to determine whether to rent a slow or a fast copier. The department believes that an employee's time is
The Decision Sciences Department is trying to determine whether to rent a slow or a fast copier. The department believes that an employee's time is worth $15 per hour. The slow copier rents for $4 per hour, and it takes an employee an average of 10 minutes to complete copying. On average, four employees per hour need to use the copying machine. (Assume the copying times and interarrival times to the copying machine are exponentially distributed.) Which copy machine should the department rent to minimize expected total cost per hour? Given the data below:

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