A Mail-Order Business Prides Itself in Its Ability to Fill

question 50

Multiple Choice

A mail-order business prides itself in its ability to fill customers' orders in six calendar days or less on the average. Periodically, the operations manager selects a random sample of customer orders and determines the number of days required to fill the orders. Based on this sample information, he decides if the desired standard is not being met. He will assume that the average number of days to fill customers' orders is six or less unless the data suggest strongly otherwise. Establish the appropriate null and alternative hypotheses.

• A) H0 : μ ≥ 6 days Ha : μ < 6 days
• B) H0 : μ ≤ 6 days Ha : μ > 6 days
• C) H0 : μ > 6 days Ha : μ ≤ 6 days
• D) H0 : μ < 6 days Ha : μ ≥ 6 days

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Definitions:

Customer Retention

Strategies and actions taken by a company to keep its customers doing business with it over time, thus reducing customer defections or churn.

Comcast

An American telecommunications conglomerate that is one of the largest broadcasting and cable television companies in the world, offering services such as video, high-speed internet, and phone over its cable networks.

Moral Hazard

A situation in policy and economics where one party is more inclined to take risks because the negative consequences of those risks will be borne, at least in part, by others.

Pre-contractual Problem

Issues that arise before a contract is finalized, often related to information asymmetry or negotiating terms.