Answer to Question #317014 in Statistics and Probability for yagmur

Question

A travel agency receives an average of 150 calls per hour (time between calls are exponentially distributed). It takes an operator an average of 5 minutes to handle a call (exponentially distributed). If a caller gets a busy signal, the travel agency assumes that he or she will call a competitor, and the travel agency will lose an average of $50 in profit. The cost of keeping a phone line open is $12 per hour. How many operators should the travel agency have on duty?

Answer 1

150 calls per hour on average

5 minutes to handle a call

therefore number of operators =$150/5=30$ operators