Fast Food Terminals II

question 43

Essay

Fast Food Terminals II
Taco Casa is considering installing touch screen terminals for patrons to place their food orders.A terminal can typically accommodate the placement of 15 orders each hour while a human can process 20 orders each hour.If employee costs are $7.50/hour in wages and $4.50/hour in taxes,benefits and insurance,what is the per order opportunity cost of a touch screen?

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Definitions:

Sample Mean

The average of all observations or data points in a sample, used as an estimate of the population mean.

Population Mean

The average of all observations or values in a total population, representing the central value around which the figures in the population distribute.

Sample Statistic s

Calculated value (such as mean or standard deviation) from a sample of data, used to infer characteristics of the entire population.

Standard Error

A measure of the statistical accuracy of an estimate, calculated as the standard deviation of the sampling distribution of a statistic.