As a customer walks into the branch office during the lunch hour, he asks the br

Question

As a customer walks into the branch office during the lunch hour, he asks the branch manager how long he can expect to wait. The branch manager replies, "Almost certainly less than 5 minutes." On the basis of the results of (a) through (c), evaluate the accuracy of this statement. Choose the correct response below.

A.

Since the mean and median are both greater than 5 minutes, the customer is likely to experience a waiting time in excess of 5 minutes.

B.

Since the range of values is greater than 5 minutes, the customer is likely to experience a waiting time in excess of 5 minutes.

C.

Since the standard deviation is less than 5 minutes, the customer is likely to experience a waiting time less than 5 minutes.

D.

Although both the mean and median are greater than 5 minutes, all values greater than 5 minutes have a Z score greater than

plus+3.0,

thus they are outliers. This means the branch manager's statement is accurate

Explanation / Answer

Ans A)

In absence of outliers, mean gives an approximation of the data. In presence of outliers, median gives a true approximation of the data.

Since both the mean and median are greater than 5 minutes, the customer is likely to experience a waiting time in excess of 5 minutes.

Hence the Manager’s statement is incorrect.

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