Statistics

Question

An immigration agent at an airport, on an average, could process 15 entrants in one hour, if he was busy all the time. On an average, an entrant arrives at his station at every 5 minutes. The agent can be replaced by a more efficient specialist. The specialist can process 20 entrants in one hour. The specialist is paid $35 per hour whereas the current agent is paid $22 per hour. If an entrant’s time is considered to be worth $10 per hour, is it worth to replace the agent with the specialist?
Note: Do hand calculations to answer this question.

Answer 1

agent gets paid $22 per hour

he on average processes 15 per minute

and on average 5 come every minute

a specialist gets paid $35 per hour

he on average can process 20 per minute

is it cheaper to replace the agent with the specialist, or not?

'

in 1 hour the agent will cost $22 for 5

in 1 hour the specialist will cost $35 for 5

35/5= $7 per entrant compared to 22/5 = $4.40 per entrant

the agent is cheaper per entrant by $2.60

and cheaper per hour by 35-22 = $13