Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Operation Management Expert

Marisol is new to town and is in the market for cellular phone service. She hassettled on Wildcat Cellular, which will give her a free phone if she signs a one-yearcontract. Wildcat offers several calling plans. One plan that she is considering iscalled “Pick Your Minutes”. Under this plan, she would specify a quantity of minutes,say x, per month that she would buy at 15¢ per minute. Hence, her upfront costwould be $0.15x. If her usage is less than this quantity x in a given month, she losesthe minutes. If her usage in a month exceeds this quantity x, she would have to pay40¢ for each extra minute (that is, each minute used beyond x). For example, if shecontracts for x=120 minutes per month and her actual usage is 40 minutes, her totalbill is $120 × 0.15 = $18.00. However, if actual usage is 130 minutes, her total billwould be $120 × 0.15 + (130 – 120) × 0.40 = $22.00. The same rates apply whetherthe call is local or long distance. Once she signs the contract, she cannot change thenumber of minutes specified for a year

Marisol estimates that her monthly needs are best approximated by the Normaldistribution, with a mean of 250 minutes and a standard deviation of 24 minutes

a) What is the probability that Marisol uses more than 270 minutes?

b) If Marisol chooses the “Pick Your Minutes” plan described above, how manyminutes should she contract for?

c) Marisol really dislikes prepaying too many minutes and not usingthem. How many minutes should she purchase so that the probabilityshe does not use them all is no more than 10%?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92184920

Have any Question?


Related Questions in Operation Management

1 please explain in depth what are the major challenges

1. Please Explain in Depth. What are the Major Challenges that Face Expatriates While Living Abroad? 2. Describe BCG growth share matrix, and show its strengths and weaknesses. Use Zara to illustrate how this model can h ...

Define a learning organization and find a current company

Define a Learning Organization and find a current company example that is utilizing a learning organizational style / organizational design (describe). Why are some companies finding it very important to sustainable succ ...

Case problem31 quality control at rainwater brewerybob

Case Problem3.1 Quality Control at Rainwater Brewery Bob Raines and Megan Waters own and operate the Rainwater Brewery, a microbrewery that grew out of their shared hobby of making home-brew. The brewery is located in Wh ...

My professor says that through social media we should be

My professor says that through social media we should be able to make contact and speak with anybody on the planet. He says everybody knows somebody that knows somebody that knows somebody. He said that we should be able ...

1 choose an article that is not qualitative research give a

1. Choose an article that is not qualitative research. Give a brief overview of the article and why you think it is substantial. 2. The biggest international cross-over in recent years was Gangnam Style, whose popularity ...

While risks may be obvious in a project individual biases

While risks may be obvious in a project, individual biases can influence the ability for change to be effective and may be more subversive. The purpose of this assignment is for you to explore potential biases that can a ...

1 what does the statistics term significant difference mean

1. What does the statistics term "significant difference" mean ? If there is a significant difference, it it automatically managerially significant? 2. What has an orginzation or a public agency (ie law enforcement) done ...

Instructionslocate an article that discusses project

Instructions Locate an article that discusses project management today. This could include conflict resolution and negotiation skills, project budgeting, risk planning, project scheduling and resource management, or the ...

Question 01what are the basic concepts of esops are there

Question 01 What are the basic concepts of ESOPs? Are there tax advantages associated with them? Do they pose commercial credit underwriting challenges? Question 02 In your opinion, is there a balance between tax plannin ...

A expatriate adjustment to the cross-cultural environment

a. Expatriate adjustment to the cross-cultural environment can be viewed as having three primary dimensions: degree, mode, and facet. b. The process of adaptation can be explained using the theory of the U-curve and soci ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As