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Monitoring phone calls to a toll-free number. A largefood-products company receives about 100,000 phone callsa year from consumers on its toll-free number. A computermonitors and records how many rings it takes for an operatorto answer, how much time each caller spends 鈥渙n hold,鈥 andother data. However, the reliability of the monitoring systemhas been called into question by the operators and their labour unions. As a check on the computer system, approximatelyhow many calls should be manually monitored during thenext year to estimate the true mean time that callers spend onhold to within 3 seconds with 95% confidence? Answer thisquestion for the following values of the standard deviation ofwaiting times (in seconds): 10, 20, and 30.

Short Answer

Expert verified

For a standard deviation of 10

43 calls should be manually monitored during the next year to estimate the true mean time that callers spend on hold to within 3 seconds with 95% confidence

For a standard deviation of 20

171 calls should be manually monitored during the next year to estimate the true mean time that callers spend on hold to within 3 seconds with 95% confidence

For a standard deviation of 30

384 calls should be manually monitored during the next year to estimate the true mean time that callers spend on hold to within 3 seconds with 95% confidence

Step by step solution

01

Given information

Answer this question for the following values of the standard deviation of waiting times (in seconds): 10, 20, and 30.

02

Finding the sample size

Here the standard error is 3

The critical value for a 95% confidence interval is

z/2=z0.05/2=z0.025=1.96

The value of the standard deviation is 10

SE=z/2nn=z2/22SE2n=1.96210232n=42.68444n43

Therefore,43 calls should be manually monitored during the next year to estimate the true mean time that callers spend on hold to within 3 seconds with 95% confidence

The value of the standard deviation is 20

SE=z/2nn=z2/22SE2n=1.96220232n=170.7378n171

Therefore,171 calls should be manually monitored during the next year to estimate the true mean time that callers spend on hold to within 3 seconds with 95% confidence

The value of the standard deviation is 30

SE=z/2nn=z2/22SE2n=1.96230232n=384.16n385

Therefore,385 calls should be manually monitored during the next year to estimate the true mean time that callers spend on hold to within 3 seconds with 95% confidence

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Most popular questions from this chapter

Question: A random sample of n measurements was selected from a population with unknown meanand known standard deviation2. Calculate a 95% confidence interval forfor each of the following situations:

a. n = 75, X = 28,2= 12

b. n = 200, X= 102, 2= 22

c. n = 100, X= 15,2=.3

d. n = 100, X= 4.05, 2= .83

e. Is the assumption that the underlying population of measurements is normally distributed necessary to ensure the validity of the confidence intervals in parts a鈥揹? Explain.

Suppose you wish to estimate a population mean correct to within .20 with probability equal to .90. You do not know 2, but you know that the observations will range in value between 30 and 34.

a. Find the approximate sample size that will produce the desired accuracy of the estimate. You wish to be conservative to ensure that the sample size will be ample to achieve the desired accuracy of the estimate. [Hint: Using your knowledge of data variation from Section 2.6, assume that the range of the observations will equal 4.]

b. Calculate the approximate sample size, making the less conservative assumption that the range of the observations is equal to 6.

Find22and1-22from Table IV, Appendix D, for each of the following:

a. n = 10, = .05

b. n = 20, = .05

c. n = 50, = .01

Customers who participate in a store鈥檚 free loyalty card program save money on their purchases but allow the store to keep track of their shopping habits and potentially sell these data to third parties. A Pew Internet & American Life Project Survey (January 2016) revealed that half (225) of a random sample of 250 U.S. adults would agree to participate in a store loyalty card program, despite the potential for information sharing.

a. Estimate the true proportion of all U.S. adults who would agree to participate in a store loyalty card program, despite the potential for information sharing.

b. Form a 90% confidence interval around the estimate, part a.

c. Provide a practical interpretation of the confidence interval, part b. Your answer should begin with, 鈥淲e are 90% confident . . .鈥

d. Explain the theoretical meaning of the phrase, 鈥淲e are 90% confident.鈥

Explain the difference between an interval estimator and a point estimator for

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