Concluding mean waiting time and premium rate

Assignment Help Basic Statistics
Reference no: EM13108490

The Internal Revenue Service (IRS) provides a toll-free help line for taxpayers to call in and get answers to questions as they prepare their tax returns. In recent years, the IRS has been inundated with taxpayer calls and has redesigned its phone service as well as posted answers to frequently asked questions on its website (The Cincinnati Enquirer, January 7, 2010). According to a report by a taxpayer advocate, callers using the new system can expect to wait on hold for an unreasonably long time of 12 minutes before being able to talk to an IRS employee. Suppose you select a sample of 50 callers after the new phone service has been implemented; the sample results show a mean waiting time of 10 minutes before an IRS employee comes on the line. Based upon data from past years, you decide it is reasonable to assume that the standard deviation of waiting time is 8 minutes. Using your sample results, can you conclude that the actual mean waiting time turned out to be significantly less than the 12-minute claim made by the taxpayer advocate? Use ex = .05.

and

Fowle Marketing Research, Inc., bases charges to a client on the assumption that telephone surveys can be completed in a mean time of 15 minutes or less. If a longer mean survey time is necessary, a premium rate is charged. A sample of 35 surveys provided the survey times shown in the file named Fowle. Based upon past studies, the population standard deviation is assumed known with a = 4 minutes.

Is the premium rate justified?

a. Formulate the null and alternative hypotheses for this application.

b. Compute the value of the test statistic.

c. What is the p-value?

d. At a = .01, what is your conclusion?

Reference no: EM13108490

Questions Cloud

Creating direct labor budget : Madden Industries manufactures three models of a product in a single plant with two departments cutting and assembly. The company has estimated costs for each of the three product models the zip, the flash and the royal models.
Statistical expectation of television numbers : Based on a survey of over 10,000 households, the number of televisions in the home was recorded as given in the table below. Based on the data, find the expected number of televisions in a home.
Significance level testing-paying bills online : Over the past few years, banks have strongly promoted online banking and the paying of bills online. In 2003, about 50% of internet users paid bills online.
Explain rights of bond holders and preferred stockholders : Describe and contrast the rights of bond holders and preferred stockholders. Which has the best position in a default, which one would you buy all other things being equal.
Concluding mean waiting time and premium rate : The Internal Revenue Service (IRS) provides a toll-free help line for taxpayers to call in and get answers to questions as they prepare their tax returns.
Price floor would lead to surplus in the market : When the demand line is perfectly elastic, there is no deadweight loss after taxation and firms must not operate if the market price is less than ‘break-even' price.
Predictors of salary : Suppose you went to the Bureau of Labor Statistics web site and found several predictors of your salary. State three possible predictors and a simulated multilinear regression equation along with their p-values.
Compute the 4-point dft using step by step method : Consider the 4-point DIT FFT with samples f(0), f(1), f(2), and f(3). Compute the 4-point DFT using step by step method to show in depth the algorithm computation.
Proportion on eagle outfitters example : Eagle Outfitters is a chain of stores specializing in outdoor apparel and camping gear. It is considering a promotion that involves mailing discount coupons to all its credit card customers.

Reviews

Write a Review

Basic Statistics Questions & Answers

  Logic of the ordinary least square

Explain the logic of the ordinary least Square (OLS) method? How are the least squares formulas for the slope and intercept derived?

  Distribution of the amount spent

A major department store chain is interested in estimating the average amount its credit card customers spent on their first visit to the chain's new store in the mall.

  Find out a p-value for the hypothesis test

If the average daily intake among 25-34-year-old males in the general population is 15 g, then, using a significance level of .05, test the hypothesis that the intake of linoleic acid in this group is lower than that of the general population. Als..

  Z test for two population proportions

A sample of 1545 men and an independent sample of 1691 women were used to compare the amount of housework done by men and women in dual-earner marriages.

  Standard deviation of download time

You are the designer for your company's web site. You have data to indicate that the mean download time for the homepage is 5.8 seconds and that the standard deviation of download time is 2.1 seconds.

  Determining values of probability on discrete distribution

Determining the probability that the two choose the same number?

  Determining npv and probability

A four-year financial project is forecast to have net cash inflows of $20,000; $25,000; $30,000; and $50,000 in the next four years. It will cost $75,000 to implement the project

  Scores from the law school admission test

Scores are obtained from the Law School Admission Test (LSAT) are normally distributed with a mean score of 550 and a standard deviation of 110.

  Charts of frequency distribution

The following frequency distribution reports electricity cost for sample of 50 two-bedroom apartments in Albuquerque, New Mexico during the month of May last year.

  Determine the standard deviation

What is the possibility that for a arbitrarily selected customer the service time could exceed 3 minutes?

  Confidence interval and margin of error

The average delivery time is 26.7 with a standard deviation of 8.527. If the customer estimates the time using a 99% confidence interval, what is the margin of error?

  Queuing theory-wheat harvesting

The wheat harvesting season is short. Farmers deliver their truck loads of wheat to a giant central storage bin within a two-week span. Because of this, wheat-filled trucks waiting to unload and return to the fields have been known to back up for ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd