US Airways conducted a number of studies that indicated a...

US Airways conducted a number of studies that indicated a substantial savings could be obtained by encouraging Dividend Miles frequent flyer customers to redeem miles and schedule award flights online (US Airways Attache, February 2003 ). One study collected data on the amount of time required to redeem miles and schedule an award flight over the telephone. A sample showing the time in minutes required for each of 150 award flights scheduled by telephone is contained in the data set Flights. Use Excel to help answer the following questions. $$ \begin{array}{l}{\text { a. What is the sample mean number of minutes required to schedule an award flight by }} \\ {\text { telephone? }} \\ {\text { b. What is the } 95 \% \text { confidence interval for the population mean time to schedule an }} \\ {\text { award flight by telephone? }}\end{array} $$ $$ \begin{array}{l}{\text { c. Assume a telephone ticket agent works } 7.5 \text { hours per day. How many award flights can }} \\ {\text { one ticket agent be expected to handle a day? }}\end{array} $$ $$ \begin{array}{l}{\text { d. Discuss why this information supported US Airways' plans to use an online system to }} \\ {\text { reduce costs. }}\end{array} $$

US Airways conducted a number of studies that indicated a substantial savings could be
obtained by encouraging Dividend Miles frequent flyer customers to redeem miles and schedule award flights online (US Airways Attache, February 2003 ). One study collected
data on the amount of time required to redeem miles and schedule an award flight over the telephone. A sample showing the time in minutes required for each of 150 award flights
scheduled by telephone is contained in the data set Flights. Use Excel to help answer the
following questions.
$$
\begin{array}{l}{\text { a. What is the sample mean number of minutes required to schedule an award flight by }} \\ {\text { telephone? }} \\ {\text { b. What is the } 95 \% \text { confidence interval for the population mean time to schedule an }} \\ {\text { award flight by telephone? }}\end{array}
$$
$$
\begin{array}{l}{\text { c. Assume a telephone ticket agent works } 7.5 \text { hours per day. How many award flights can }} \\ {\text { one ticket agent be expected to handle a day? }}\end{array}
$$
$$
\begin{array}{l}{\text { d. Discuss why this information supported US Airways' plans to use an online system to }} \\ {\text { reduce costs. }}\end{array}
$$

Key Concepts

Cost Efficiency and Process Improvement

Cost efficiency and process improvement analyze how changes in operational methods, such as shifting from telephone-based to online scheduling, can reduce labor and operational costs. By understanding the time savings through online systems, organizations can make informed decisions to enhance productivity and reduce expenses in customer service operations.

Throughput Analysis

Throughput analysis involves estimating the number of transactions or tasks that can be processed over a given period based on the average time required per transaction. In this scenario, calculating how many award flights a ticket agent can handle in a workday relies on the average call duration and is used to assess operational performance.

Descriptive Statistics

Descriptive statistics involve summarizing and organizing data so that patterns can be discerned. In the context of the question, calculating the sample mean provides a measure of central tendency that gives an estimate of the average time taken to schedule an award flight by telephone. This step is foundational for understanding the dataset before applying further inferential techniques.

Confidence Interval

A confidence interval is a range computed from sample data within which the true population parameter is expected to lie with a specified level of confidence, often 95%. Constructing a confidence interval for the population mean allows one to account for sampling variability and provides an estimative range for the average time required to schedule a flight.

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