Valles Global Industries (VGI) is getting ready to market theirInternet-based party planning service. One of the menu items is akabob. The kabob was designed to have four vegetable chunks andthree chunks of protein: beef, chicken, shrimp or tofu. On average,any vegetable will yield 5 chunks suitable for a kabob. One of anyten vegetables will be of poor quality and cannot be used. Inpresenting a menu and budget to a party-thrower, VGI recommends twokabobs per person.
- VGI also offers a statistical modeling program that preventsfood waste. They have data that recommends a mean number of partyattenders as well as metrics on variability. Imagine you areplanning an event with VGI. They suggest the number ofparty-attenders for a 200 person party estimate is actuallydistributed N(150, 1225). They also recommend using a probabilityof 90 percent for attendees. If VGI charges you $100 per attendee,how much does their recommendation save you?
- Referring to A above, would you take their recommendation? Whyor why not?
