Q Suppose you own a local pizza restaurant, Pizza with Pizzazz, and in order to
ID: 2924078 • Letter: Q
Question
Q Suppose you own a local pizza restaurant, Pizza with Pizzazz, and in order to compete with the big pizza chains in your area you are considering an advertising campaign offering customers a free pizza if their pizza is not delivered in 30 minutes or less. Even though your pizza restaurant is known for its fast and friendly delivery service, you are not sure if you can afford to give away too many pizzas for free.
Looking over your past 12,421 pizza deliveries you find out that 12,048 were delivered in 30 minutes or less.
What is the probability that a randomly selected pizza from your restaurant will be delivered in 30 minutes or less? (Round 2 decimals)
What is the probability that a randomly selected pizza from your restaurant will NOT be delivered in 30 minutes or less? (Round 2 decimals)
Based on the information given and the calculations you did above, should you advertise that deliveries not made in 30 minutes or less are free? Explain your reasoning using complete sentences.
Explanation / Answer
What is the probability that a randomly selected pizza from your restaurant will be delivered in 30 minutes or less?
Pr(A randomly selected pizza will be delivered in 30 min or less) = 12048/ 12421 = 0.97
What is the probability that a randomly selected pizza from your restaurant will NOT be delivered in 30 minutes or less? (Round 2 decimals)
Pr(A randomly selected pizza will not be delivered in 30 min or less) = 1 - 12048/ 12421 = 0.03
Based on the information given and the calculations you did above, should you advertise that deliveries not made in 30 minutes or less are free? Explain your reasoning using complete sentences.
Yes, as there are more than 95% probability that any pizza will be delivered in 30 min or less. We shall advertise that deliveries not made in 30 minutes or less are free.
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