A Consulting Team Hired by Mr. Mull T. Plex, Case Study Example

Introduction

A consulting team has been hired by Mr. Mull T.  Plex and the theatre group in order to review and itemize the law suit that has been made by Tommy against the organization representing the Royal Theater. The law suit is based on misrepresentation and the organization of theaters. The organization that represents Royal theatre is preparing for a potential class action litigation action that could be derived from the case with Tommy.

Factual Presentation

Tommy’s lawsuit is founded upon the distortion of the facts. The movie was scheduled to begin at 1: 00 PM. Tommy confirmed this information with the clerk at the ticket booth and the newspaper. The lights were dimmed at 1:00 P.M. There was twenty minutes of advertisements that were presented prior to the presentation of the movie. Tommy alleges that the schedule’s representation was incorrect.

Material Damages

Having experienced emotional and financial detriment, Tommy is initiating a litigation action against Mr. Mull T. PLex. The litigation action is founded on the admission fee to the movie, the money spent on refreshments the gasoline and automobile expense incurred in traveling to the cinema.

Legal

After a careful analysis of the fact that have been presented by both parties, there is a deficiency in fraudulent misrepresentation with regards to pursuing litigation. Consequently, Tommy case does not have a strong standing.

Ethical

The law suit that has been presented by Tommy was motivated by the deficient characteristic of quality that was presented by the Royal Theater. The litigation does not need to continue and a resolution can be reached by applying slight amendments to the policies of the Royal Theater.

Statistical

It can be demonstrated that statistically, 94% of the consumers who were surveyed were not annoyed by the commercials that had been presented prior to the cinematic presentation.

Survey Outcome

The outcome of the survey demonstrated that 6% of the respondents were annoyed with the presentation of advertisements during the movie.

Statistical Considerations

In reviewing the case, there are two categories of error that can be man made by the organization. An error that is categorized as Type I is a false positive error. The error that are categorized as Type I would be when the null hypothesis is disregarded when it proves to be acceptable. This type of error may take place in the event that the organization defends any category of lawsuit presented against them with a 6% rate of consumer dissatisfaction that was shown in the two surveys. There is a range of 4.65% in the degree of satisfaction of the consumers. The index of dissatisfaction of the consumers may vary from 1. 35% to 10.65% (0.0135- 0.1065). The second category of error that can be made is a Type II error or what is designated as a false negative. The Type II error takes places when the alternative hypothesis is disregarded when it should be maintained as acceptable. The unique category of error that should be made by the organization is a Type II error.

The alpha value that is applied in this evaluation is 0.5. Considering that the p value is greater than the alpha value, the null hypothesis is not rejected. The hypothesis is supported by the organization and the organization will proceed with the litigation. The p- value is 0.06. (6/ 100)

 Secondary Survey of Respondents

The survey was conducted with a larger group of respondents with a larger population size of the sample. The sample dimensions were 300 (N= 300) with a p- value = .06. The test statistic is – 1.33. The standard normal distribution chart gives a p value of 0.0918 which is greater than the alpha value of 0.05. As this hold true the alternate hypothesis is accepted. The confidence interval can be ascertained as 0.06 x 1.96 = (0.0331, 0.0869). This is derived by taking the p value of 0.6 x 1.96 and 1.96 x ((P x (1= P))/ 100]^{1/ 2}.  The test hypothesis is Z = -2.31. The p value is 0.0104. The alpha value is 0.5. The null hypothesis is disregarded..

Recommendation

The lawsuit that is being carried against Royal Theater is focused on its customer service. Considering this characteristic, it would be advisable for the staff at Royal Theater to be precise and truthful with regards to the start times of their movies. The staff should provide the accurate times with regards to the diming of the luminescence in the theater. The actual schedule of the films should be revealed to the clients.  Providing dissatisfied clients with refunds should become policy.

Conclusion

In the application of legal, ethical and statistical inferences, it has been determined that tommy’s case is small and should be resolved prior to reaching a courtroom. The challenge originates from Tommy’s perspective on the Royal Theater customer service department and refund policy. The reasoning that is applied by Tommy does have some consideration. The statistical survey demonstrated that 6% of the movie consumers were annoyed by the presentation of advertisements.