A waiting-line system that meets the assumptions of M/M/S has ? = 5, ? = 4, and M = 2. For these values, Po is approximately 0.23077, and Ls is approximately 2.05128. What is the average number of units waiting in the queue?

Your parents have an investment portfolio of $400,000, and they wish to take out cash flows of $50,000 per year as an ordinary annuity

How long will their portfolio last if the portfolio is invested at an annual rate of 4.50%? Use a calculator to determine your answer. A) 8.00 years B) 9.10 years C) 9.60 years D) 10.14 years

Suppose someone offered you your choice of two equally risky annuities, each paying $5,000 per year for 5 years. One is an annuity due, while the other is a regular (or deferred) annuity

If you are a rational wealth maximizing investor, which annuity would you choose? A) The annuity due B) The deferred annuity C) Either one, because as the problem is set up, they have the same present value. D) Without information about the appropriate interest rate, we cannot find the value of the two annuities, hence we cannot tell which is better. E) The annuity due; however, if the payments on both were doubled to $10,000, the deferred annuity would be preferred.