Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A new shopping mall is considering setting up an information desk manned by one employee. Based upon information obtained from similar information desks, it is

A new shopping mall is considering setting up an information desk manned by one employee. Based upon information obtained from similar information desks, it is believed that people will arrive at the desk at a rate of 15 per hour. It takes an average of 3 minutes to answer a question. It is assumed that the arrivals follow a Poisson distribution, and answer times are exponentially distributed. Assume that the information desk employee earns $10 per hour. The cost of waiting time, in terms of customer unhappiness with the mall, is $12 per hour of time spent waiting in line.

a) Find the average time a customer spends waiting in the queue.

b) Find the total expected costs over an 8-hour day.

A firm specializing in agricultural products wants to conduct a market trial for one of its new products. A random sample of 600 potential customers is chosen to receive advertising material describing the new product.

It is decided that additional advertising and promotion will occur only if the sample results provide strong evidence that the actual (population) response rate will exceed 7%.

What decision will be made if 50 out of the 600 people make a purchase? Test using = 0.05

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Calculus Early Transcendentals

Authors: Michael Sullivan, Kathleen Miranda

7th Edition

1464144397, 9781464144394

More Books

Students also viewed these Mathematics questions

Question

Debate the overexpansion of mental disorders attributed to the DSM.

Answered: 1 week ago

Question

What is meant by organisational theory ?

Answered: 1 week ago

Question

What is meant by decentralisation of authority ?

Answered: 1 week ago

Question

Briefly explain the qualities of an able supervisor

Answered: 1 week ago

Question

Define policy making?

Answered: 1 week ago

Question

Define co-ordination?

Answered: 1 week ago