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Suppose that in an effort to provide better service to the public, the director

ID: 3175722 • Letter: S

Question

Suppose that in an effort to provide better service to the public, the director of the local office is permitted to provide discounts to those individuals whose wait longer than a predetermined time. The historical mean waiting time is 30 minutes and the standard deviation is 8 minutes. The director decides that 16% of the customers should receive this discount. How many minutes, approximately, do they need to wait to receive the discount? Assume that the distribution of waiting times is normal. 14 22 30 38 46 Consider the information given in the previous question and complete the following statement: Only about 2.5% of the individuals wait less than _____ minutes. 14 22 30 38 46

Explanation / Answer

for top 16% ; lie at 84 percentile corresponding to which z=0.9945

hence corresponding waiting time =mean +z*std deviation =30+8*0.9945=~38 option D is corrrect

6) for bottom 2.5% values lies at z=-1.96

hence corresponding value =30-1.96*8=~14 minutes

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