Bones Brothers & Associates prepare indidual tax returns. Over prior years, Bone

Question

Bones Brothers & Associates prepare indidual tax returns. Over prior years, Bones Brothers has maintained careful records regarding the time to prepare a return. The means then to prepare a return is 90 minutes and the standard deviation of this distrubution is 14 minutes. Suppose too returns from years are selected and anlysis regarding the preparation time. What is the probability that the mean time for the sample of 100 returns for this year is greater than 92? Approximately zero 0.0832 0.4168 0.0764

Explanation / Answer

From information given, Xi=92, Xbar=90, s=14/sqrt 100=1.4 [Per centarl limit theorem, with higher sample size, the standard deviation of ditribution is s/sqrt n]. Substitute the values in following equation to obtain z score and then find subsequent area corresponding to the z score.

z=(Xi-Xbar)/s=(92-90)/1.4=1.43

Required probability is 0.0764.

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