Assignment:
Q1. Fisher’s Furniture Store sells $800,000 worth of furniture to customers on credit each month. The Accounts Receivable balance in the accounting books averages $2 million. On average, how long are customers taking to pay their bills?
Q2. Vacation Inns, a chain of hotels operating in the southeastern region of the U.S., uses a toll-free telephone number to take reservations for all of its hotels. An average of 12 calls are received per hour. The probability distribution that describes the arrivals is unknown. Over a period of time, it is determined that the average caller spends 6 minutes on hold waiting for service. Find the average number of callers in the queue by using Little’s Law.
Provide complete and step by step solution for the question and show calculations and use formulas.