The Owner of Sal's Italian Restaurant Wants to Study the Growth

question 54

Short Answer

The owner of Sal's Italian Restaurant wants to study the growth of his business using simulation. He is interested in simulating the number of customers and the amount ordered by customers each month. He currently serves 1000 customers per month and feels this can vary uniformly between a decrease of as much as 5% and an increase of up to 9%. The bill for each customer is a normally distributed random variable with a mean of $20 and a standard deviation of $5. The average order has been increasing steadily over the years and the owner expects the mean order will increase by 2% per month. You have created the following spreadsheet to simulate the problem.

-Sal, from Exhibit 12.5, has produced the following spreadsheet to compute confidence intervals on his income. What formula should go in cell B12 to compute the upper limit on a 95% confidence interval for the population proportion below 90%?

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Definitions:

Interpersonal Contacts

Relationships or interactions between individuals, involving communication and exchange of ideas, emotions, or information.

Adaptive Organizations

Companies or entities that are able to adjust and evolve in response to changes in their environment or industry.

Narrow Spans of Control

An organizational structure where a manager has a limited number of direct reports, allowing closer supervision and interaction.

Initiative

The ability to assess and initiate actions independently, often leading to innovation or problem-solving.