The Overnight Shipping Business Has Skyrocketed in the Last Ten

question 83

Multiple Choice

The overnight shipping business has skyrocketed in the last ten years. The single greatest predictor of a company's success is customer service. A study was conducted to determine the customer satisfaction levels for one overnight shipping business. In addition to the customer's satisfaction level, the customers were asked how often they used overnight shipping. The results are shown in the following table:

$\begin{array} { c | c c c | c } & { \text { Satisfaction level } } & \\\text { Frequency of Use } & \text { High } & \text { Medium } & \text { Low } & \text { TOTAL } \\\hline \text { <2 per month } & 250 & 140 & 10 & 400 \\2 - 5 \text { per month } & 140 & 55 & 5 & 200 \\> 5 \text { per month } & 70 & 25 & 5 & 100 \\\hline \text { TOTAL } & 460 & 220 & 20 & 700\end{array}$
Suppose that one customer who participated in the study is chosen at random. What is the probability that the customer had a high level of satisfaction and used the company more than five times per month?

• A) \(\frac { 1 } { 10 }\)
• B) \(\frac { 3 } { 10 }\)
• C) \(\frac { 4 } { 5 }\)
• D) \(\frac { 7 } { 10 }\)

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Definitions:

Process Controls

Mechanisms and procedures implemented to regulate and optimize the performance of processes within an organization.

Formalization

Is written documentation of work rules, policies, and procedures.

Total Quality Management

A holistic approach to long-term success that views continuous improvement in all aspects of an organization as a process and not as a short-term goal.

Centralization

The degree to which the authority to make decisions is restricted to higher levels of management.