At Hot Dog Queen Restaurant, the following sequenceof events occurs during each minute:a With probability p, a customer arrives and waits inline. b Hot Dog Queen determines the rate s at which cus-tomers are served. If any customers are in the restaurant, then with probability s, one of the customers completesservice and leaves the restaurant. It costs c(s) dollars perperiod to serve customers at a rate s. Each customerspends R dollars, and the customer’s food costs Hot DogQueen R 1 dollars to prepare.c For each customer in line at the end of the minute,a cost of h dollars is assessed (because of customerinconvenience).d The next minute begins.Formulate a recursion that could be used to maximizeexpected revenues less costs (including customerinconvenience costs) incurred during the next T minutes.Assume that initially there are no customers present.
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.
At Hot Dog Queen Restaurant, the following sequence
of
a With
line.
b Hot Dog Queen determines the rate s at which cus-
tomers are served. If any customers are in the restaurant,
then with probability s, one of the customers completes
service and leaves the restaurant. It costs c(s) dollars per
period to serve customers at a rate s. Each customer
spends R dollars, and the customer’s food costs Hot Dog
Queen R 1 dollars to prepare.
c For each customer in line at the end of the minute,
a cost of h dollars is assessed (because of customer
inconvenience).
d The next minute begins.
Formulate a recursion that could be used to maximize
expected revenues less costs (including customer
inconvenience costs) incurred during the next T minutes.
Assume that initially there are no customers present.
Step by step
Solved in 2 steps
