Required Tasks:
1. Use the sample information to compute a measure of performance that Tony can use to analyze his delivery performance.
2. State a hypothesis test that would help Tony decide to offer the delivery guarantee or not.
3. Calculate sample statistics and formally test the hypothesis stated in (2).
4. Estimate the probability of an order taking longer than 30 minutes.
5. Summarize your findings and make a recommendation in a short report.
Following his graduation from college, Tony Smith wanted to con-tinue to live and work in Oxford. However, the community was small and there were not a lot of readily available opportunities for a new college graduate. Fortunately, Tony had some experience working in the food service industry gained in the summers and throughout high school at his uncle’s restaurant in Buffalo. When Tony decided to leverage his experience into a small delivery and take-out restaurant located close to the university, he thought he had hit on a great idea. Tony would offer a limited fare consisting of the buffalo wings his uncle had perfected at his restaurant. Tony called his restaurant Wings of Fire. Although success came slowly, the uniqueness of Tony’s offering coupled with the growth of the university community made Wings of Fire a success.
Tony’s business was pretty simple. Tony purchased wings locally. The wings were then seasoned and prepared in Tony’s restaurant. Once an order was received, Tony cooked the wings, which were then delivered or picked up by the customer. Tony’s establishment was small, and there was no place for customers to dine in the restaurant. However, his wings proved so popular that over time, Tony hired several employees, including three delivery drivers. Business was steady and predictable during the week, with the biggest days being home-football Saturdays.