Answer:
a.
The fraction of the time is incoming alarms directed to the police is 74.02%
b.
The home security company has to pay $3,197,665 the local police every month.
Explanation:
As per the given data
Numbers of guards = 5 guards
Calls received per hour = 12 calls per hour
Activity time = 90 minutes
First, calculate the inter-arrival time
Inter-arrival time = Minutes in an hour / Numbers of calls received per hour = 60 minutes per hour / 12 calls per hour = 5 minutes
a.
First, calculate the ratio of activity time to inter-arrival time
Ratio = Activity time / Inter-arrival time = 90 minutes / 5 minutses = 18
Now calculate the probability of all 5 servers are busy using ratio of activity time to inter-arrival time
Probability =
( ratio )
Probability =
( 18 )
Probability = 0.7402
Probability = 74.02%
Hence the probability of incoming calls directed to the police is 74.02%
b.
First, calculate the loss of customers
Loss of customers = Probability x ( 1 / Servers )
Loss of customers = 74.02% x ( 1 / 5 )
Loss of customers = 0.7402 x 0.20
Loss of customers = 0.14804 per minute
Loss of customers = 0.14804 per minute x 24 x 60 x 30 = 6,395.33 calls per month
Now calculate the total loss
Total loss = 6,395.33 calls x $500
Total loss = $3,197,665