SOLUTION: Suppose that you are working for a chain restaurant and wish to design a promotion to disabuse the public of notions that the service is slow. You decide to institute a policy that

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Question 1174466: Suppose that you are working for a chain restaurant and wish to design a promotion to disabuse the public of notions that the service is slow. You decide to institute a policy that any customer that waits too long will receive their meal for free. You know that the wait times for customers are normally distributed with a mean of 16 minutes and a standard deviation of 3.3 minutes. Use statistics to decide the maximum wait time you would advertise to customers so that you only give away free meals to at most 1% of the customers.
• Determine an estimate of an advertised maximum wait time so that 1% of the customers would receive a free meal. Round to one decimal place minutes
• Include a graph illustrating the solution. For the graph do NOT make an empirical rule graph, just include the mean and the mark off the area that corresponds to the 1% who would receive the refund. There is a Normal Distribution Graph generator linked in the resources area. Combine the above into as single file and upload using the link below
• Write a response to the vice president explaining your prescribed maximum wait time. Structure your essay as follows:
 An advanced explanation of the normal distribution
 Why the normal distribution might apply to this situation
 Describe the specific normal distribution for this situation (give the mean and standard deviation)
 Explain how the graph created in part b. represents the waiting times of the customers.
 Explain the answer to part a. in terms of both the customers who get a free meal and those who do not. Feel free to use the accurate answer in part a to determine a "nice" wait time to be used in the actual advertising campaign.
 Use the answers to parts a. and b. to explain how the proposal will not result in a loss of profit for the company.

Answer by ewatrrr(24785) (Show Source):
You can put this solution on YOUR website!

Hi Normal Distribution: μ = 16m and σ = 3.3m Determine an estimate"x" of an advertised maximum wait time so that 1% of the customers would receive a free meal. z = 2.326 appropriate to use. 2.326(3.3) + 16 = 23.667min 0r 23.7min 23.7m of wait time would be the max for 99% of the people . keisan.casio.com Wish You the Best in your Studies.