Question

In: Statistics and Probability

  1. The owner of a popular chicken restaurant, Chicken-For-Me, with many branches wanted to know if...

  1. The owner of a popular chicken restaurant, Chicken-For-Me, with many branches wanted to know if the quality of customer service at a new restaurant was acceptable. One aspect of service that was examined was the length of time that customers had to wait in line before ordering their food. The restaurant decided on acceptable probabilities for the waiting-time categories, and these are given below.
Waiting-time Category
Probability
No more than 1 minute
0.15
More than 1 minute but no more than 3 mins
0.30
More than 3 minutes but no more than 5 mins
0.24
More than 5 minutes but no more than 10 minutes
0.25
More than 10 minutes
0.06
To investigate whether the quality of customer service was acceptable, waiting times were recorded for a random sample of 100 customers at the new Chicken-for-Me. The table below shows the number of customers observed in the five waiting-time categories.
Waiting-time Category
  
Number of Customers
No more than 1 minute
20
More than 1 minute but no more than 3 mins
31
More than 3 minutes but no more than 5 mins
31
More than 5 minutes but no more than 10 minutes
15
More than 10 minutes
3
Total
100
Use the sample data for the 100 customers to conduct a statistical test to determine if the waiting times at the new Chicken-For-Me are inconsistent with the acceptable probabilities for the waiting- time categories.

2.

A randomly selected group of men and women were surveyed to investigate the association between gender and the amount of money spent at a local store, Bullseye. Results are shown in the table below:
Dollars Spent @ “Bullseye”
$0 to $50
$51 to $100
$101 to $200
more than $201
Total
Men
18
85
71
90
264
Women
35
72
98
142
347
Total
53
157
169
232
611
Is there convincing evidence that there is an association between gender and the amount of money spent at “Bullseye”?

Solutions

Expert Solution

1.

No more than 1 minute : Accepted probability = 0.15 i.e. out of 100 customers, 100 x 0.15 = 15 < 20 (Actual result from sample survey)
More than 1 minute but no more than 3 mins : Accepted probability = 0.3 i.e. out of 100 customers, 100 x 0.3 = 30 < 31 (Actual result from sample survey)
More than 3 minutes but no more than 5 mins : Accepted probability = 0.24 i.e. out of 100 customers, 100 x 0.24 = 24 < 31 (Actual result from sample survey)
More than 5 minutes but no more than 10 minutes : Accepted probability = 0.25 i.e. out of 100 customers, 100 x 0.25 = 25 > 15 (Actual result from sample survey)
More than 10 minutes : Accepted probability = 0.06 i.e. out of 100 customers, 100 x 0.06 = 6 > 3 (Actual result from sample survey)

Waiting times were recorded for a random sample of 100 customers at the new Chicken-for-Me.

Thus waiting time is very much within acceptable limit.

2.

There is not enough evidence to conclude. Rather the pattern showing is not regular in nature. Thus there may be a nonlinear relation but that is not clear enough from present evidence.


Related Solutions

The owner of a popular chicken restaurant, Chicken-For-Me, with many branches wanted to know if the...
The owner of a popular chicken restaurant, Chicken-For-Me, with many branches wanted to know if the quality of customer service at a new restaurant was acceptable. One aspect of service that was examined was the length of time that customers had to wait in line before ordering their food. The restaurant decided on acceptable probabilities for the waiting-time categories, and these are given below. Waiting-time Category Probability No more than 1 minute 0.15 More than 1 minute but no more...
Gino’s Restaurant is a popular restaurant in Boston, Massachusetts. The owner of the restaurant has been...
Gino’s Restaurant is a popular restaurant in Boston, Massachusetts. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. The intern, in consultation with the owner, identified the following major activities: Activity Cost Pool Activity Measure Serving a party of diners Number of parties served Serving a diner Number of diners served Serving drinks Number of drinks ordered A group of diners who...
Gino’s Restaurant is a popular restaurant in Boston, Massachusetts. The owner of the restaurant has been...
Gino’s Restaurant is a popular restaurant in Boston, Massachusetts. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. The intern, in consultation with the owner, identified the following major activities: Activity Cost Pool Activity Measure Serving a party of diners Number of parties served Serving a diner Number of diners served Serving drinks Number of drinks ordered A group of diners who...
1. The president of a national real estate company wanted to know why certain branches of...
1. The president of a national real estate company wanted to know why certain branches of the company outperformed others. He felt that the key factors in determining total annual sales ($ in millions) were the advertising budget (in $1000s) X1 and the number of sales agents X2. To analyze the situation, he took a sample of 25 offices and ran the following regression. The computer output is below.             PREDICTOR            COEF             STDEV                       P-VALUE             Constant                    -19.47             15.84                          0.2422             X1                                0.1584            .0561                          0.0154             X2                                0.9625            .7781                          0.2386             Se = 7.362                             R squared = .524                             Sig F...
Hiram’s Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the...
Hiram’s Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. The intern, in consultation with the owner, identified three major activities and then completed the first-stage allocations of costs to the activity cost pools. The results appear below. Activity Cost Pool Activity Measure Total Cost Total Activity Serving a party of...
Hiram’s Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the...
Hiram’s Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. The intern, in consultation with the owner, identified three major activities and then completed the first-stage allocations of costs to the activity cost pools. The results appear below. Activity Cost Pool Activity Measure Total Cost Total Activity Serving a party of...
Hiram’s Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the...
Hiram’s Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. The intern, in consultation with the owner, identified three major activities and then completed the first-stage allocations of costs to the activity cost pools. The results appear below. Activity Cost Pool Activity Measure Total Cost Total Activity Serving a party of...
Hiram’s Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the...
Hiram’s Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. The intern, in consultation with the owner, identified three major activities and then completed the first-stage allocations of costs to the activity cost pools. The results appear below. Activity Cost Pool Activity Measure Total Cost Total Activity Serving a party of...
Hiram’s Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the...
Hiram’s Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. The intern, in consultation with the owner, identified three major activities and then completed the first-stage allocations of costs to the activity cost pools. The results appear below. Activity Cost Pool Activity Measure Total Cost Total Activity Serving a party of...
Hiram’s Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the...
Hiram’s Lakeside is a popular restaurant located on Lake Washington in Seattle. The owner of the restaurant has been trying to better understand costs at the restaurant and has hired a student intern to conduct an activity-based costing study. The intern, in consultation with the owner, identified three major activities and then completed the first-stage allocations of costs to the activity cost pools. The results appear below. Activity Cost Pool Activity Measure Total Cost Total Activity Serving a party of...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT