Creating a Long Distance Telephone Plan

Created by: Jaimie Goodwin and Laura Talbert

Research current Long Distance Plans

Develop your own long distance plan

Conduct a survey to determine the popularity of your Plan

I decided to use the phone companies that were given to us in the Applied Mathematics textbook, instead of the actual telephone companies that exist.

Comparing the Competition

I am using three fictitious companies provided by the Textbook, they are:

Dash CanadaTellMeBellWest

In the following slides you will see each individual companies plans.

Easy to Understand plan

10 cents per minute for calls anywhere in Canada

20 cents per minute for call anywhere in the United States

Calling card rates have the same rates as long distance rates

Monthly fee of $22 dollars pays for 250 minutes to any place within Canada or the United States

Beyond 250 minutes the long distance rate for evenings and weekends is 10 cents per minute

Charges 22 cents per minute for daytime, weekday calls anywhere in Canada and the United States.

27 cents per minute for calling card calls anywhere in Canada and the United States

Calls less than 10 seconds are free

Offer “by-the-second” billing

No monthly service fee

“Infinite Talk” plan offers 7 cents per minute for any long distance calls within Canada on weekday evenings (6 p.m. – 8 a.m.) and weekends (6 p.m.Friday – 8 a.m. Monday).

15 cents per minute for long distance calls to the United States on weekday evenings and weekends

20 cents per minute for daytime, weekday calls anywhere in Canada and 25 cents for daytime, weekday calls anywhere in the United States.

Calling card rates are the same price as regular calls anywhere in Canada and the U.S.

Dash Canada TellMe BellWest

Canada: daytime, weekday

0.10 0.22 0.20

Canada: night-time, weekend

0.10 0.00 0.07

U.S. : daytime, weekday

0.20 0.22 0.25

U.S. : night-time, weekend

0.20 0.00 0.15

Calling Card Canada: daytime, weekday

0.10 0.27 0.20

Calling Card Canada: night-time, weekend

0.10 0.27 0.07

Calling Card U.S.: daytime, weekday

0.20 0.27 0.25

Calling Card U.S.: night-time, weekend

0.20 0.27 0.15

* This Table was created in a theory that my family would not use over 250 minutes of long distance *

Families Long Distance Minutes

Canada: daytime, weekday 10

Canada: night-time, weekend 30

U.S. : daytime, weekday 10

U.S. : night-time, weekend 50

Calling Card Canada: daytime, weekday

0

Calling Card Canada: night-time, weekend

0

Calling Card U.S.: daytime, weekday

0

Calling Card U.S.: night-time, weekend

0

The table represents the amount of minutes my family spends on long

distance. Since we do not use calling cards there is 0

minutes used on them.

The Calculations on my Calculator

You have the enter the table into a 3 X 8 matrix. Then you use your families phone bill and enter it into a 8 X 1 matrix, like the one below.

B=10

30

10

40

0

0

0

0

Then……..

You multiply the two.

A X B = 14

4.4

12.6

Because we used less than 250 using Tellme’s Plan we must now add 22 dollars to Tellme’s total price.

4.4 + 22 = 26.40

Putting it all together

The final total would be:

Dash Canada Tellme BellWest

Family Phone Bill

$14.00 $26.40 $12.60

Would you consider switching Telephone companies Mom?

Before you decide to sit down with the family there are some details you should first consider they are:

Is your family always going to phone under 250 minutes?

Are there any incentives that their previous plan offers that the cheapest plan does not?

If so what are they? Are there any incentives close to that?

Creating my Own Long Distance Phone Plan

Outline of my Plan

Nortill offers two plans

1) CallCan – Canada

2) CallUS-US

CallCan-Canada

• 10 cents per minute daytime, weekdays

• 8 cents per minute night-time, weekends

• Calling cards have the same rate

• Incentives: No monthly fee Calls under 10 seconds are free Easy to understand

CallUS-US

•No monthly fee

•Calls under 10 seconds are free

•15 cents per minute anywhere in the United States daytime, and weekdays

•12 cents per minute anywhere in the United States night-time, and weekends.

•Same rates for the calling cards

Nortill Rates

Nortill Rates

Canada: daytime, weekday 0.10

Canada: night-time, weekend 0.08

U.S. : daytime, weekday 0.15

U.S. : night-time, weekend 0.12

Calling Card Canada: daytime, weekday 0.10

Calling Card Canada: night-time, weekend 0.08

Calling Card U.S.: daytime, weekday 0.15

Calling Card U.S.: night-time, weekend 0.12

Using my Plan, what would be my family’s

Phone Bill?

First we must enter the new table into matrix A in my calculator, I will just add another column to the matrix to make it a 4 X 8 matrix and multiply it by matrix B

A X B = 14

4.4

12.6

9.7

My families new phone bill would be $9.70

Dash Canada

10 cents per minute for calls anywhere in Canada

20 cents per minute for call anywhere in the United States

Calling card rates have the same rates as long distance rates

An easy to understand plan

TellMe

Monthly fee of $22 dollars pays for 250 minutes to any place within Canada or the United States

Beyond 250 minutes the long distance rate for evenings and weekends is 10 cents per minute

Charges 22 cents per minute for daytime, weekday calls anywhere in Canada and the United States.

27 cents per minute for calling card calls anywhere in Canada and the United States

Good plan if you call under 250 minutes

BellWest

Calls less than 10 seconds are free

Offer “by-the-second” billing

No monthly service fee

“Infinite Talk” plan offers 7 cents per minute for any long distance calls within Canada on weekday evenings (6 p.m. – 8 a.m.) and weekends (6 p.m.Friday – 8 a.m. Monday).

15 cents per minute for long distance calls to the United States on weekday evenings and weekends

20 cents per minute for daytime, weekday calls anywhere in Canada and 25 cents for daytime, weekday calls anywhere in the United States.

Calling card rates are the same price as regular calls anywhere in Canada and the U.S.

Nortill

CallCan-Canada•10 cents per minute daytime, weekdays anywhere in Canada•8 cents per minute night-time, weekends anywhere in Canada•Calling cards have the same rate•Incentives:No monthly fee Calls under 10 seconds are freeEasy to understand

CallUS-United States

•No monthly fee

•Calls under 10 seconds are free

•15 cents per minute anywhere in the United States daytime, and weekdays

•12 cents per minute anywhere in the United States night-time, and weekends.

•Same rates for the calling cards

Summary Continued

Survey At Least 30 Adults

Now I am heading out to do my survey of 30 adults. My mission to discover which of my four plans they like more, and whether or not they would switch to another

Conclusions after the Survey

The conclusions that I made from the survey are in the following table. The table illustrates the percentage of the people I surveyed who either want to stay with their current plan or want to switch to mine.

Dash Canada TellMe BellWest Nortill

Dash Canada

0.80 0.05 0.05 0.10

TellMe 0.10 0.60 0.20 0.10

BellWest 0.10 0.06 0.70 0.14

Nortill 0.70 0.10 0.10 0.10

Now create a Transition Matrix….

Using the information from the previous table, we can now create a transition matrix to discover how many people in the city that would switch to my Long Distance plan.

0.80 0.05 0.05 0.10

0.10 0.60 0.20 0.10

0.10 0.06 0.70 0.14

0.70 0.10 0.10 0.10

C=

C is my new transition matrix

To figure out the probability of the people in my city switching to my plan I must use the formula:

Pn=Po X Tn

Where Po is the initial probability and T is the transition matrix.

Po is the following:

.25 .25 .25 .25 D=

Finding out the Probability

So……Therefore……….

Pn=Po X Tn

P1 = D X C

P1 = 0.425 0.2025 0.2625 0.11

That means that the probability that members of Calgary will switch to my plan is 0.11 or 11%

The End

I hope you enjoyed this presentation