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Management Studies

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?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91766088

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