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Bud Wiser, is the recently hired manager of Hops and Ale. Hops and Ale is a smal

ID: 439842 • Letter: B

Question

Bud Wiser, is the recently hired manager of Hops and Ale. Hops and Ale is a small hole-in-the-wall bar that only sells a few types of domestic and foreign beers. Bud is concerned because the bar has a recent history of declining sales. His employment contract states that his bonus and continued employment is directly dependent on his ability to increase sales. Michael Soft, the owner, is a software engineer that has amassed a large historical database and has generated numerous statistics of the bar.

The statistics show that about 80% of the customers are male. About 70% of the males and 40% of the females order domestic beer. The typical male has five beers while the typical female has three. For the last 50 weeks, on a typical weekday (Monday to Thursday), the average number of customers served daily between 5-7 pm has followed the following frequency distribution.

Number of Customers

f (weeks)

30

5

31

8

32

9

33

16

34

7

35

5

50

For the last 50 weeks, on a typical Friday, the average number of customers served daily between 5-7 pm has followed the following frequency distribution.

Number of Customers

f (weeks)

36

7

37

8

38

9

39

8

40

9

41

9

50

As a way of increasing profits, Bud is considering a Happy Hour Promotion every week-day between 5-7 pm. He estimates that this would increase the number of male patrons by 15% and the number of female patrons by 25%. The Happy Hour Promotion would be to buy one beer and get another free. A second promotion would be to have Lady

Number of Customers

f (weeks)

30

5

31

8

32

9

33

16

34

7

35

5

50

Explanation / Answer

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