Question: The Snowpea Restaurant is an oriental take out/delivery restaurant in a large Canadian city. Most of its deliveries are within a 15 kilometer radius, though occasionally a delivery is made outside this circle. Snowpea employs four delivery persons, and has been receiving complaints from customers about excessive delivery times. To examine the issue, Snowpea has collected a sample of data on 76 deliveries during the peak dinner period, contained in the file Snowpea.xls x . In this file, the variables are:

1. Order number
2. Delivery person number
3. Preparation time: the interval between when the order was placed to the time the delivery person left the premises
4. Travel time: the time in minutes it took to drive from Snowpea to the customer
5. Distance: the distance in kilometers from Snowpea to the customer.

a) Estimate the total time (preparation plus delivery) for each delivery person. Based on your estimate, can you conclude that there is a real difference between the shortest time and longest time delivery person? Is this a fair comparison?

b) Do the delivery people travel at different speeds? Set up a confidence interval for each deliverer’s speed, and interpret it to establish whether the average speeds differ. Are you making any critical assumptions in this comparison?

c) Snowpea would like to advertise that it will guarantee a delivery time of M minutes within a 15 kilometer radius, where M is to be determined. To back this up, Snowpea will give customers a $10 certificate for their next order if M is exceeded for orders within this circle. Estimate the proportion of orders that would be given a certificate with the current delivery system if M=30 minutes. For every 1,000 deliveries, what would be the cost of this policy? (Use a confidence interval estimate.) What would happen if M=35 minutes?

Price: $2.99

Solution: The downloadable solution consists of 8 pages
Deliverable: Word Document