10. Bones Brothers & Associates prepare individual tax returns. Over prior years

Question

10. Bones Brothers & Associates prepare individual tax returns. Over prior years, Bones Brothers has maintained careful records regarding the time to prepare a return. The mean time to prepare a return is 90 minutes and the standard deviation of this distribution is 14 minutes. Suppose 100 returns from this year are selected and analyzed regarding the preparation time. What assumption do you need to make about the shape of the population distribution of all possible tax preparation times to make inferences about the mean time to complete a tax form?

The population distribution is skewed to the right.

The population distribution is skewed to the left.

The population distribution is normal.

The shape of the population distribution does not matter.

Explanation / Answer

To find the mean time to complete the tax forms, we need to make the assumptions that:

1) The data points are i.i.d (i.e independent and identically distributed)

2) They follow a normal distribution.

Option C is correct.

Hope this helps.

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