The fast-food industry in the United States has typically used drive-through windows to increase profitability. With 65 percent of fast-food revenue derived from drive-through windows, these windows have become the focal point for market share competition among fast-food outlets such as Wendy’s, McDonald’s, Burger King, Arby’s, and Taco Bell. Even chains that did not use drive-through windows in the past, such as Starbucks and Dunkin’ Donuts, have added them to their stores.1 Production technology changes have included the use of separate kitchens for the drive-through window, timers to monitor the seconds it takes a customer to move from the menu board to the pickup window, kitchen redesign to minimize unnecessary movement, and scanners that send customers a monthly bill rather than having them pay at each visit. Now, in an attempt to cut costs and increase speed even further, McDonald’s franchises have tested remote order-taking.2 It takes an average of 10 seconds for a new car to pull up to a drive-through menu after one car has moved forward. With a remote call center, an order-taker can answer a call from a different McDonald’s where another customer has already pulled up. Thus, a call center worker in California may take orders from Honolulu, Gulfport, Miss., and Gillette, Wyo. This means that during peak periods, a worker can take up to 95 orders per hour. The trade-offs with this increased speed at the drive-through window are employee dissatisfaction with constant monitoring and the stress of the process, decreases in accuracy in filling orders, and possible breakdowns in communication over long distances. However, this technology may be expanded to allow stores, such as Home Depot, to equip carts with speakers that customers could use to wirelessly contact a call center for shopping assistance. In Asia and other parts of the world where crowded cities and high real estate costs limit the construction of drive-throughs, McDonald’s and KFC have added motorbike delivery as part of their growth strategy.3 Fifteen hundred of the 8,800 restaurants in McDonald’s Asia/Pacific, Middle East, and Africa division offer delivery, while half of the new restaurants KFC builds in China each year will offer delivery. The delivery option requires an area in the restaurant to assemble orders that are placed in battery-powered induction heating boxes. Along with cold items in insulated containers, all of the orders are placed on the back of yellow and red McDonald’s branded motorbikes or electric scooters. Most McDonald’s delivery orders are phoned in, but the company has started offering Internet-based ordering in Singapore and Turkey. The number of call centers may be reduced in the future as online ordering increases. Neither McDonald’s nor KFC plan to use this technology in the United States, where McDonald’s derives two-thirds of its sales from drive-through customers. This case illustrates how firms can use production technology to influence their costs, revenues, and profits. Because firms in more competitive markets may not have much ability to influence the prices of their products, they may depend more on strategies to increase the number of customers and lower the costs of production. These strategies may involve changing the underlying production technology, lowering the prices paid for the inputs used, and changing the scale of operation.

Many small restaurants in Portland, Oregon, and other cities across the United States do not take reservations. Owners say that with smaller capacity, no-shows are costly, and they would rather have their staff focused on customer service rather than maintaining a reservation system.† However, it is important to be able to give reasonable estimates of waiting time when customers arrive and put their name on the waiting list. The file RestaurantLine contains 10 observations of number of people in line ahead of a customer (independent variable x) and actual waiting time (in minutes) (dependent variable y). The estimated regression equation is:

ŷ = 4.35 + 8.81x

and MSE = 94.42.

(a)

Develop a point estimate (in min) for a customer who arrives with four people on the wait-list. (Round your answer to two decimal places.)

ŷ^* =  min

(b)

Develop a 95% confidence interval for the mean waiting time (in min) for a customer who arrives with four customers already in line. (Round your answers to two decimal places.)

min to  min

(c)

Develop a 95% prediction interval for Roger and Sherry Davy's waiting time (in min) if there are four customers in line when they arrive. (Round your answers to two decimal places.)

min to  min

(d)

Discuss the difference between part (b) and part (c).

The prediction interval is much  ---Select--- wider narrower than the confidence interval. This is because it is  ---Select--- more less difficult to predict the waiting time for an individual customer arriving with four people in line than it is to estimate the mean waiting time for a customer arriving with four people in line.

The mean cost of domestic airfares in the United States rose to an all-time high of $385 per ticket.† Airfares were based on the total ticket value, which consisted of the price charged by the airlines plus any additional taxes and fees. Assume domestic airfares are normally distributed with a standard deviation of $110.

(a)

What is the probability that a domestic airfare is $550 or more? (Round your answer to four decimal places.)

(b)

What is the probability that a domestic airfare is $210 or less? (Round your answer to four decimal places.)

(c)

What is the probability that a domestic airfare is between $320 and $460? (Round your answer to four decimal places.)

(d)

What is the minimum cost in dollars for a fair to be included in the highest 9% of domestic airfares? (Round your answer to the nearest integer.)

$

Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information:

• Each T-shirt is expected to sell for $24.
• The purchasing manager buys the T-shirts for $10 each.
• The company needs to have enough T-shirts on hand at the end of each quarter to fill 34 percent of the next quarter’s sales demand.
• Selling and administrative expenses are budgeted at $98,000 per quarter plus 14 percent of total sales revenue.

Required:
1. Determine budgeted sales revenue for each quarter.



2. Determine budgeted cost of merchandise purchased for each quarter.



3. Determine budgeted cost of good sold for each quarter.



4. Determine selling and administrative expenses for each quarter.



5. Complete the budgeted income statement for each quarter.

1) babies at risk weights of new born babies in the United States are normally distributed with a mean of 3420 g and a standard deviation of 495(based on data from "birth weight and prenatal mortality" by Wilcox et al., journal of the American medical association, via. 273 No.9). A newborn weighing less than 2200 g is considered to be at risk, because the mortality rate for this group is at least 1%. what percentage of newborn babies are in the "at-risk" category? if the Chicago general hospital has 900 births in a year. how many of the babies are in the "at-risk" category?

2) Measurements of human skulls from different epochs are analyzed to determine whether they change over time. The maximum breadth is measured for skulls from Egyptian males who lived around 3300 B.C. Results show that those breadths are normally distributed with a mean of 132.6 mm and a standard deviation of 5.4 mm. An archeologist discovers a male Egyptian skull and a field measurement reveals a maximum breadth of 124 mm. Find the probability of getting a value of 124 mm or less if a skull is randomly selected from the period around 3300 B.C. Is the newly found skull likely to come from that era?

The United States has a lot of federally owned land. Unfortunately, uncontrolled natural forest fires destroy large areas in the western US every summer. In 2002, about 1,000,000 acres of standing timber in national forests were consumed. Some consideration is being given to improved management practices that could produce electric power from residual forest thinning. Estimate the lost energy content of burned US forests during 2002. Assuming the US average electricity demand is about 300,000 MW e , how much forested land would be needed to produce all the country ’ s power? Is this a sustainable alternative? How would you manage the forest lands needed? A few facts to consider: the total forested area on US federal lands in the lower 48 states is about 600 million acres with a standing stock density of about 100 dry metric tonnes of wood per acre. Woody plants and trees capture solar energy via photosynthesis at an average rate of about 0.8 W/m 2 , which corresponds to producing about 5 – 10 dry tons of biomass per acre annually with an average heating value of 8000 BTU/dry lb. Note that 1 acre = 43,560 ft 2 = 0.405 hectare = 4047 m 2 and the average heat-to-work conversion efficiency of a biomass-fired electric power plant is about 35%.

Different nations have proposed different responses to climate change. For example:

-The United States has proposed to inject aerosols into the stratosphere as a means of solar radiation management.

-China has proposed to implement solar radiation management using reflectors in space.

-Scotland has proposed marine cloud brightening for solar radiation management.

(etc. etc….)

Choosing any one of the above examples, describe in more detail how the response could be implemented. Outline the likely risks covering technical, social and economic perspectives.

* PLEASE CHOOSE THE EASIEST AND SHORTEST ANSWER .

*PLEASE TYPE THEM ON COMPUTER

Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information: Quarter 1-49000, Quarter 2-78000, Quarter 3- 39000 Quarter 478000 Budgeted Unit Sales. Each T-shirt is expected to sell for $24. The purchasing manager buys the T-shirts for $10 each. The company needs to have enough T-shirts on hand at the end of each quarter to fill 34 percent of the next quarter’s sales demand. Selling and administrative expenses are budgeted at $98,000 per quarter plus 14 percent of total sales revenue. Required: 1. Determine budgeted sales revenue for each quarter. 2. Determine budgeted cost of merchandise purchased for each quarter. 3. Determine budgeted cost of good sold for each quarter. 4. Determine selling and administrative expenses for each quarter. 5. Complete the budgeted income statement for each quarter.