Break-Out Session 2a Delivery Times at Red Dragon Restaurant
Break-Out Session 2a Delivery Times at Red Dragon Restaurant
Break-Out Session 2a
Answer the following questions and then, based on your analysis, write couple of paragraphs
with reasonable recommendations to the management of Red Dragon.
1. Red Dragon is concerned that one or more of the new delivery people might be slower
than the others.
a) Find 95% confidence intervals for the mean travel time and the mean total time
for each delivery person (the total time is the sum of the travel and prep times).
Are these fair measures for comparing the efficiency of the delivery people?
b) Find a 95% confidence interval for the mean speed of delivery for each delivery
person, where speed is measured as miles per hour during the trip from the
restaurant to the customer.
2. Red Dragon would like to advertise that it can achieve a total delivery time of no more
than M minutes for all customers within a 10-mile radius. On all orders that take more
than M minutes, Red Dragon will offer the customers a £10 certificate on their next
purchase.
a) Calculate the proportion of deliveries (within the 10-mile limit) that will be on
time if M = 25, 30, or 35 minutes.
b) Let us call the proportion of on-time deliveries p. There is a known expression
for the confidence interval of this quantity:
[ p 2 p(1 p) / n , p 2 p(1 p) / n ]
where n is the sample size.
Assume for now that the delivery people in the sample are representative of all
Red Dragon's delivery people. Find a 95% confidence interval for the proportion
of deliveries (within the 10-mile limit) that will be on time if M = 25, 30, or 35
minutes. NOTE: The square root function in Excel is SQRT.
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c) Suppose that Red Dragon makes 1000 deliveries within the 10-mile limit. For
each of the values of M in part (a) above, find a 95% confidence interval for the
total £ amount of certificates it will have to give out for being late.
3. Test whether there is a significant difference between the mean speeds for each pair of
delivery people.