When 1500 orders are placed how many customers get a pizza for free in the following case:
The amount of time it takes for a pizza to be delivered is normally distributed with a mean of 23.9 min, and standard deviation of 2.7 min. If anyone has to wait 30 min for an order, they get it for free.
The time taken to deliver a pizza is normally distributed with an average duration of 23.9 minutes and a standard deviation of 2.7 minutes. If a customer has to wait over 30 minutes for a pizza it is delivered for free. The number of people that get a free pizza if 1500 orders are placed has to be determined.
First, find the z-score for 30. It is given by: (30 - 23.9)/2.7 = 2.259
From the normal table the value for 2.259 is 0.9878. The percentage of the area lying beyond 30 minutes is 0.0122
This gives the number of customers that get a free pizza as 1500*0.0122 = 18.3. Taking the higher integer gives 19.
Approximately 19 customers of the 1500 get a free pizza.
Not sure if this a new question but say that given this data, the pizza place owner decides to invest in an oven that costs 15000, (and each pizza costs 30 $) How long would it take for the owner to make money?