The Time to Check Out Guests at a Hotel Was

question 39

Essay

The time to check out guests at a hotel was measured over the course of several weeks. Management believes that the target time for checking out guests should be between 2 and 4 minutes with a target of 3 minutes. The data gathered had a mean time of 2.75 minutes with a standard deviation of 0.4 minutes. Find and interpret C_p, C_pl, C_pu, and C_pk in the context of this situation.

---

Definitions:

Covariance

A measure of the degree to which two variables move together. In finance, it is used to measure how returns on two assets are related.

Regression Analysis

A statistical method used to examine the relationship between one dependent variable and one or more independent variables.

Slope

In mathematics and economics, the slope represents the rate at which a variable changes in relation to another variable, often depicted as the rise over run on a graph.

Beta

An indicator of the fluctuation or inherent risk of a security or portfolio compared to the overall market.