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The ZZZ chain of motels has a standard method of constructing their buildings to
maximize the ease of parking for its customers. The rooms are arranged in adjacent
buildings, A and B, so that customers can park close to their rooms. The layout for
the 48-room motels is diagrammed below:
The manager wishes to assess customer satisfaction with the motel services. His plan
is to survey the adults in each of 12 rooms. The cleaning staff will place surveys on
the customers' beds before they check in to the motel. In order to make the directions
easy for the cleaning staff to follow, he elects to use systematic sampling.
a) Describe carefully how you would use random numbers to set up the systematic
sampling process. (In your description you may assume you have a random
number table, but do NOT carry out the procedure you describe.)
b) Write a short paragraph for the cleaning staff that explains how to carry out your
method in part (a). The members of the cleaning staff have not taken statistics, so
the use of statistical terminology will not be helpful.
Standard Direct Materials Cost
Standard direct materials cost is the estimated or pre-determined cost of raw materials used in production, based on standard pricing.
Standard Quantity Allowed
The predetermined amount of materials or inputs expected to be used in the production of goods or services under normal conditions.
Total Sales Variance
The difference between a company's actual sales and its budgeted or projected sales, indicating performance deviations.
Average Price
The mean price of a product or stock over a specific period, calculated by dividing the total cost by the number of units.
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