In: Statistics and Probability
The shape of the distribution of the time required to get an oil change at a 20-minute oil-change facility is unknown. However, records indicate that the mean time is 21.4 minutes, and the standard deviation is 4.5 minutes.
(c) Suppose the manager agrees to pay each employee a $50 bonus if they meet a certain goal. On a typical Saturday, the oil-change facility will perform 35 oil changes between 10 A.M. and 12 P.M. Treating this as a random sample, there would be a 10% chance of the mean oil-change time being at or below what value? This will be the goal established by the manager.
There is a 10% chance of being at or below a mean oil-change time of ___ minutes.
(Round to one decimal place as needed.)
Solution,
Given that,
mean = = 21.4
standard deviation = = 4.5
n = 35
= = 21.4
= / n = 4.5 / 35 = 0.76
Using standard normal table
P(Z < z ) = 10%
P(Z < z ) = 0.10
P(Z < -1.282 ) = 0.10
z = -1.282
Using z-score formula
= z * +
= -1.282 * 0.76 + 21.4
= 20.4 minutes.