In: Statistics and Probability
Suppose a retailer claims that the average wait time for a customer on its support line is 173 seconds. A random sample of 56 customers had an average wait time of 164 seconds. Assume the population standard deviation for wait time is 50 seconds. Using a 95% confidence interval, does this sample support the retailer's claim?
Using a 95% confidence interval, does this sample support the retailer's claim? Select the correct choice below, and fill in the answer boxes to complete your choice. (Round to two decimal places as needed.)
A. No, because the retailer's claim is not between the lower limit of nothing seconds and the upper limit of nothing seconds for the mean wait time.
B. Yes, because the retailer's claim is nothing between the lower limit of nothing seconds and the upper limit of nothing seconds for the mean wait time.
Solution:
Given:
Claim: the average wait time for a customer on its support line is 173 seconds.
Sample size = n = 56
Sample mean = seconds.
The population standard deviation = seconds
We have to find 95% confidence interval for the average wait time for a customer on its support line.
Formula:
where
We need to find zc value for c=95% confidence level.
Find Area = ( 1 + c ) / 2 = ( 1 + 0.95) /2 = 1.95 / 2 = 0.9750
Look in z table for Area = 0.9750 or its closest area and find z value.
Area = 0.9750 corresponds to 1.9 and 0.06 , thus z critical value = 1.96
That is : Zc = 1.96
Thus
thus
Using a 95% confidence interval, does this sample support the retailer's claim?
B. Yes, because the retailer's claim is 173 between the lower limit of 150.90 seconds and the upper limit of 177.10 seconds for the mean wait time.