Exhibit 12.5 The Following Questions Use the Information Below

question 2

True/False

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.
-The objective in queuing problems is to find the service level that achieves an acceptable balance between the cost of providing service and customer satisfaction.

---

Definitions:

Governmental Units

Entities established by governmental authorities to perform specific functions, such as cities, counties, and special districts.

Merchandise

Goods that are bought and sold in business, often synonymous with stock or inventory.

Fraudulent Misrepresentation

A wrongful statement, action, or concealment, pertinent to the subject matter of a contract, that is knowingly made to damage the other party.

Sales Puffery

Persuasive words or exaggerated arguments made by salespeople to induce customers to buy their product. As long as such comments are reserved to opinion and do not misstate facts, they are not actionable as fraud, even if they turn out to be grossly in error. Also called puffery.