Reference no: EM131390241
A restaurant believes that two of the most important factors that help it attract and retain customers are the price of the item and the time taken to serve the customer.
Based on the price for similar items in other neighboring restaurants, it is estimated that the customer tolerance limit for price is $8, and the associated customer loss is estimated to be $50. Similarly, the customer tolerance limit for the service time is 10 minutes for which the associated customer loss is $40. A random sample of size 10 yields the following values of price: 6.50, 8.20, 7.00, 8.50, 5.50, 7.20, 6.40, 5.80, 7.40, 8.30.
The sample service times (in minutes) are 5.2, 7.5, 4.8, 11.4, 9.8, 10.5, 8.2, 11.0, 12.0, 8.5. Find the total expected loss per customer. If the restaurant expects 2000 customers monthly, what is the expected monthly loss?
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: The sample service times (in minutes) are 5.2, 7.5, 4.8, 11.4, 9.8, 10.5, 8.2, 11.0, 12.0, 8.5. Find the total expected loss per customer. If the restaurant expects 2000 customers monthly, what is the expected monthly loss?
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: The sample service times (in minutes) are 5.2, 7.5, 4.8, 11.4, 9.8, 10.5, 8.2, 11.0, 12.0, 8.5. Find the total expected loss per customer. If the restaurant expects 2000 customers monthly, what is the expected monthly loss?
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