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15 June, 04:33

A small mail order firm Seas Beginnings has one phone line. An average of 60 people per hour call in orders and it takes an average of 1 minute to handle a call. The time between calls and the time to handle calls are exponentially distributed. If the phone line is busy, Seas Beginnings can put up to c - 1 people on hold. If c - 1 people are on hold, a caller gets a busy signal and calls a competitor (Air End). Seas Beginnings wants only 1% of all callers to get a busy signal. How many people should the company be able to put on hold?

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  1. 15 June, 06:16
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    No. of Persons = 16

    Step-by-step explanation:

    There was a one phone line

    Average no of people calling = 60 in one hour

    % of all callers at most can get busy signal

    Probability < 0.6

    Probability for less than 1 person on hold = 0.2642

    No of persons = 0.2642 (60)

    = 15.852 or 16

    16 persons in hour the company is able to put on hold
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