Use the information below to answer the following question(s).
A bank is opening a new location in a business district.They have to determine how many teller windows to have open during the busy lunchtime hour.The demand during this hour is forecast to be normally distributed with a mean of 23 customers and a standard deviation of 10 customers.The average business revenue generated from each customer is $25 and each customer takes an average of 5 minutes to be served.Tellers are paid an hourly wage of $20.
-What is the value of the critical fractile?
A)0.4
B)0.48
C)0.54
D)0.65

Question

Quizplus · Accepted Answer

The critical fractile is calculated as the ratio of the cost of underage to the sum of the costs of underage and overage. Here, the cost of underage is the lost revenue per customer ($25), and the cost of overage is the teller's wage per customer served ($20/12 customers per hour). The critical fractile is 25 / (25 + (20/12)) = 0.54.

Use the Information Below to Answer the Following Question(s)