Assignment:
1. Comfortable retirement. The company offers semi¬nars on the important topic of retirement planning, For a typical seminar, the room rental at a hotel is $1,000, and the cost of advertising and other inci¬dentals is about $10,000 per seminar. The cost of the materials and special gifts for each attendee is $60 per person attending the seminar. The company charges $250 per person to attend the seminar as this seems to be competitive with other companies in the same business. Flow many people must attend each seminar for Golden Age to break even?
2. A couple of entrepreneurial business students at State University decided to put their education into practice by developing a tutoring company for busi¬ness students. While private tutoring was offered, it was determined that group tutoring before tests in the large statistics classes would be most beneficial. The students rented a room close to campus for $300 for 3 hours. They developed handouts based on past tests, and these handouts (including color graphs)
cost $5 each. The tutor was paid $25 per hour, for a
total of $75 for each tutoring session.
(a) If students are charged $20 to attend the session, how many students must enroll for the company to break even?
(b) A somewhat smaller room is available for $200 for 3 hours. The company is considering this possibility. How would this affect the break-even point?
3. Patients arrive at the emergency room of Costa Val¬ley Hospital at an average of 5 per day. The demand for emergency room treatment at Costa Valley follows a Poisson distribution.
(a) Using Appendix C, compute the probability of exactly 0, 1, 2, 3, 4, and 5 arrivals per day,
(b) What is the sum of these probabilities, and why is the number less than 1?
4. Cars arrive at Carla's Muffler shop for repair work at an average of 3 per hour, following an exponen¬tial distribution.
(a) What is the expected time between arrivals?
(b) What is the variance of the time between arrivals?