The Time Taken for Guests to Check Out at a Hotel

question 2

Multiple Choice

The time taken for guests to check out at a hotel front desk was measured over the course of several weeks. The management believes that the target time for checking out guests should be between 2 and 3 minutes with a target of 2.5 minutes. The data gathered for the actual process had a mean time of 2.75 minutes with a standard deviation of 0.45 minutes. The process capability index will be:

• A) less than or equal to 1.
• B) more than 3 but less than or equal to 5.
• C) more than 4 but less than or equal to 5.
• D) more than 5.

---

Definitions:

Fixed Expenses

Costs that do not fluctuate with changes in production level or sales volume, such as rent.

Contribution Margin

The amount by which the sales price of a product exceeds its variable costs, contributing to covering fixed costs and generating profit.

Fixed Costs

Expenses that do not change with the level of production or sales activity, such as rent, salaries, and insurance.

Net Income Target

A net income target is a predefined earnings figure that a company aims to achieve within a specific time frame.