A hotel owner needs to decide whether or not to hire an inspector for hotel rooms at a cost of $25,000 per year. The cost of screen out rooms needing rework is $4.00, with a corrective action cost of $20.00. Historically, the average is one in 150 rooms needs rework. What is the probability that a room needs rework? (p). Use the kp rule to decide if zero or 100% in needed. If no room is inspected, then what is the average cost per room? If the hotel has 200 rooms, how the owner will save per day? Per year
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
A hotel owner needs to decide whether or not to hire an inspector for hotel rooms at a cost of $25,000 per year. The cost of screen out rooms needing rework is $4.00, with a corrective action cost of $20.00. Historically, the average is one in 150 rooms needs rework.
- What is the probability that a room needs rework? (p).
- Use the kp rule to decide if zero or 100% in needed.
- If no room is inspected, then what is the average cost per room?
- If the hotel has 200 rooms, how the owner will save per day? Per year?
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