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Time limit for cell phone contract

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Suppose that a market research analyst for a cell phone company conducts a study of their customers who exceed the time allowance included on their basic cell phone contract; the analyst finds that for those people who exceed the time included in their basic contract, the excess time used follows an exponential distribution with a mean of 22 minutes. Consider a random sample of 80 customers who exceed the time allowance included in their basic cell phone contract.

-Suppose that one customer who exceeds the time limit for his cell phone contract is randomly selected. Find the probability that this individual customer's excess time is longer than 20 minutes.

-Find the probability that the mean excess time used by the 80 customers in the sample is longer than 20 minutes.

-Compare/Comment on the results of 1 & 2 above.

Reference no: EM132522226

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