Extremely unhappy with the terms of the promotion

Assignment Help Finance Basics
Reference no: EM131042229

The coffee company American Expresso has a new promotion where "if you don't get your take away coffee within 180 seconds, it's free!". However, far too many coffees seem to have been given away since the promotion began.

American Expresso has commissioned an independent study which found that the time to prepare a take away coffee at one of their stores is approximately normally distributed with a mean time of 209 seconds and a standard deviation of 21 seconds.

You may find this standard normal table useful throughout the following questions.

a)Calculate the percentage of take away coffees that are given to customers for free according to the promotion. Give your answer as a

percentage to 1 decimal place.

Percentage of free coffees = %

b)Shareholders are extremely unhappy with the terms of the promotion and suggest that the time limit should be such that at most only 2.5% of take away coffees are given for free under the promotion.

Calculate the time limit such that this requirement is satisfied. Give your answer as a whole number.

Time limit = seconds

Reference no: EM131042229

Questions Cloud

View of business ethics : Write an essay (5 pages max.) as to your view of Business Ethics. This is basically a summary paper of your ‘ethical position’ from your experience, knowledge and what you have gleaned from this class. Please indicate the basis (parental influence, l..
What motivated the creation of the russian empire : What motivated the creation of the Russian Empire? What were the major differences between the Chinese naval expeditions and the naval expeditions of Europe?
Slips of paper containing the numbers : Five slips of paper containing the numbers 1, 13, 19, 25, 27 are placed in a hat. If the experiment consists of drawing one number, and if the experiment is repeated a large number of times, what is the expected value E(x) of the number drawn?
Paper - domain based es in costomer relationship managment : I have sent u my paper in that topic allotted for me is "DOMAIN BASED ES IN COSTOMER RELATIONSHIP MANAGMENT". Things to do first: First we have to select an article which is published recently in 2016 or 2015 regarding customer relationship managemen..
Extremely unhappy with the terms of the promotion : Shareholders are extremely unhappy with the terms of the promotion and suggest that the time limit should be such that at most only 2.5% of take away coffees are given for free under the promotion.
How you may present information for the viewer : Consider how you may present information for the viewer to gain a more formal understanding of the theme and the argument presented in the research paper (much like the signage in the museum or the audio tours provided).
A brief description of two potential positive : A brief description of two potential positive and two potential negative feelings that both you, as the social worker, and the client might feel, regarding the termination of a therapeutic relationship. Then, explain a skill you might use to assis..
Problem regarding the customer satisfaction : An insurance company wants to estimate the proportion of people unsatisfied with their new telephone help service. A survey of 200 callers revealed 45 were unsatisfied with the service. Construct by hand a 95% confidence interval for the proportio..
Confidence interval for the average number : a) Calculate by hand and interpret the 99 percent confidence interval for the average number of items produced per hour. b) What assumption did you make in order to answer part (a)?

Reviews

Write a Review

Finance Basics Questions & Answers

  Why are accounting ratios valuable for predicting

why are accounting ratios valuable for predicting bankruptcy? what cautions do we need in evaluating accounting

  Directions be sure to save an electronic copy of your

directions be sure to save an electronic copy of your answer before submitting it to ashworth college for grading.

  Which asset have a greater annual straight-line depreciation

Asset B will have a useful life of 6 years and cost $1.3 million; it will have installation costs of $180,000 and a salvage or residual value of $300,000. Which asset will have a greater annual straight-line depreciation?

  What should a potential investor understand about the ratio

So how would we interpret the results of the ROE for ScottsMiracle -Gro from 2006-2010. What does it mean in terms of financial performance and what should a potential investor understand about the ratio?

  Suppose the interest rate r is constant given s0 find the

suppose the interest rate r is constant. given s0 find the price s1 of the stock after one day such that the marking to

  What is the highest expected return these bonds could have

Go to Chapter Resources on MyFinanceLab and use the data in the spreadsheet provided to estimate the beta of Nike and Dell stock based on their monthly returns from 2004–2008. (Hint: You can use the slope() function in Excel.)

  Revise the pricing strategy

As a advertiser, when do you think it is right to go against the pricing norms of your company? Would you be comfortable making the case to executives.

  What kind of deal did the player snag

If the appropriate interest rate is 13 percent, what kind of deal did the player snag? Assume all payments are paid at the end of the year.

  Calculate the debt ratio under both alternatives

The company is considering two alternatives to raise the $2 million: (1) sell common stock at $10 per share, or (2) Sell bonds at a 10 percent coupon, each $1,000 bond carrying 50 warrants to buy common stock at $15 per share.

  Klingons current balance sheet

Klingon's current balance sheet shows net fixed assets of $12 million, current liabilities of $860,000, and net working capital of $224,000. If all the current assets were liquidated today, the company would receive $1.06 million cash.

  A stock that sells for less than $1 per share is called a

A stock that sells for less than $1 per share is called a

  Define consumer behavior and discuss the underlying premise

there are six steps in the consumer research process. pick a good or service you have an interest in and question

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd