Questions: The less frequently customers arrive, the blank larger the capacity smaller the rate of lost demand larger the rate of lost demand smaller the capacity

The less frequently customers arrive, the blank
larger the capacity
smaller the rate of lost demand
larger the rate of lost demand
smaller the capacity

Transcript text: The less frequently customers arrive, the _blank_ larger the capacity smaller the rate of lost demand larger the rate of lost demand smaller the capacity

Solution

Solution Steps

To determine the correct answer, we need to understand the relationship between customer arrival frequency and the rate of lost demand. If customers arrive less frequently, the system has more time to handle each customer, which should result in a smaller rate of lost demand.

Step 1: Understanding the Relationship

In queuing theory, the frequency of customer arrivals affects the system's ability to manage demand. When customers arrive less frequently, the system has more capacity to serve each customer, which leads to a decrease in the rate of lost demand.

Step 2: Analyzing the Options

We have the following options to consider:

Larger the capacity
Smaller the rate of lost demand
Larger the rate of lost demand
Smaller the capacity

Given that less frequent arrivals allow the system to handle demand more effectively, we can conclude that the rate of lost demand decreases.

Step 3: Selecting the Correct Answer

From our analysis, the correct option that reflects the relationship between customer arrival frequency and lost demand is "smaller the rate of lost demand".