You Want to Estimate σ for the Population of Waiting $$\sigma$$

question 30

Essay

You want to estimate σ for the population of waiting times at McDonald's drive-up windows,
and you want to be 95% confident that the sample standard deviation is with 20% of $$\sigma$$ Find
the minimum sample size. Is this sample size practical?

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Definitions:

Variable Cost

Expenses that change in proportion to the level of production or sales volume, such as raw materials and direct labor.

Transfer Price

The rate at which products and services are exchanged among departments within the same organization.

Opportunity Cost

The value of the best alternative that is foregone when a particular decision is made.

Transfer Price

The price at which divisions of a company transact with each other, such as the trade of supplies or labor between departments.