Exhibit 12.5 The Following Questions Use the Information Below

question 39

Essay

Exhibit 12.5
The following questions use the information below.
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.
-A simulation model was replicated 100 times yielding a mean of 82.59 with variance of 17.66. Of the 100 replications, 11 replications yielded an outcome over a value of 100. The 95% confidence interval of the mean is the interval (81.77, 83.41). Of the 100 simulation outcomes, 65 outcomes failed to fall within this interval. What is wrong with the confidence interval?

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Definitions:

Leadership Styles

The various approaches to leadership that management may use to interact with employees, make decisions, and motivate people, including autocratic, democratic, transformational, and laissez-faire styles.

Three-Dimensional Style

A design or artistic style that gives the illusion of depth and volume, creating a lifelike appearance.

Dysfunctional Behaviors

Actions or habits that are negative and do not support the wellbeing or goals of an individual or group.

Eye Contact

The act of looking directly into another person's eyes, which can communicate attention, confidence, and sincerity.