Problem
This problem illustrates some of the economic issues facing service providers as they migrate away from voice-only systems to mixed-media systems. Suppose you are a service provider with 120 kHz of bandwidth that you must allocate between voice and data users. The voice users require 20 kHz of bandwidth and the data users require 60 kHz of bandwidth. So, for example, you could allocate all of your bandwidth to voice users, resulting in six voice channels, or you could divide the bandwidth into one data channel and three voice channels, etc. Suppose further that this is a time-division system with timeslots of duration T. All voice and data call requests come in at the beginning of a timeslot, and both types of calls last T seconds. There are six independent voice users in the system: each of these users requests a voice channel with probability .8 and pays $.20 if his call is processed. There are two independent data users in the system: each of these users requests a data channel with probability .5 and pays $1 if his call is processed. How should you allocate your bandwidth to maximize your expected revenue?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.