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An important part of the customer service responsbilities of a natural gas utility company concerns the speed with which calls relating to no heat in a house can be serviced. Suppose that one service variable of importance refers to whether or not the repair person reaches the home within a two hour period. Past data indicate that the likelihood is .75 that the repair person reaches the home within a two hour period. If a sample of 8 service calls for "no heat" is selected, what is the probability that the repair person will arrive at 5 or more homes within the two hour period?
P = ______
Continue the case. The natural gas utility company makes a claim in a tv advertisement: "We understand that waiting for a service call can be stressful for our customers. Therefore, we wish to back up our claim that 75% of our repair professionals reach a customer's home within a two hour period. Should they fail to reach your home within the specified time period, we will compensate you by subtracting $8 from your next gas bill." What is the expected value that the commitment per service call?
ABC Airlines has calculated the total costs (fixed and variable) for the passenger service flights between Los Angeles, California and Orlando, Florida. The two methods used were the high-low method and the least squared method.
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