Reference no: EM133250233

1. The manager of a branch of a major bank wants to improve service and is thinking about giving $1 to any customer who waits in line for a period of time that is considered excessive. (The bank ultimately decided that more than 8 minutes is excessive.) However, to get a better idea about the level of current service, the bank undertook a survey of customers. A student was hired to measure the time spent waiting in line by a random sample of 50 customers. Using a stopwatch, the student determined the amount of time between the time the customer joined the line  and the time they reached the teller. The times were recorded. Construct a 99% confidence interval estimate of the mean waiting time for the bank's customers.

2. You are interested in the return of education on wages. To investigate this relationship, you collect a random sample, regress wage on education and find that one additional year of education, on average, leads to Aus10,000 more in salary per yearly. The p-value is 0.001 and the R-squared is  0.9 Excited about this sizeable effect you present your results to your master thesis advisor. He is sceptical and says that the true effect is likely much lower. Which of the reasons below could explain the advisors statement?