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5. The Inland Revenue department claims it takes an average of 6 hours to complete a tax form. Assuming the time to complete the form is normally distributed with a standard deviation of 45 minutes:

i. What percent of people would you expect to complete the form in more than 5 hours?


ii. If a sample of 20 taxpayers are selected, what is the probability that the sample mean is less than 6.5 hours?​

1 Answer

5 votes

Answer:

i) 90.82% of the people can complete the form in more than 5 hours

ii) The probability that the sample mean is less than 6.5 hours is 0.9986 (99.86%)

Explanation:

* Lets explain how to sole the problem

- The average time to complete a tax form is 6 hours

- Assuming the time to complete the form is normally distributed with a

standard deviation of 45 minutes

∵ 1 hour = 60 minutes

∴ 45 minutes = 45/60 = 0.75 hour

∴ The standard deviation is 0.75 hour

i)

- We need to know the percentage of the people who complete the

form in more than 5 hours

* Lets use z-score to find the probability

∵ z-score = (x - μ)/σ , where

# x is the score

# μ is the mean

# σ is the standard deviation

∵ μ = 6 , σ = 0.75 , x = 5


z=(5-6)/(0.75)=-1.33

- Use the normal distribution table to find the corresponding area

of z-score -1.33

∵ The corresponding area of -1.33 = 0.09176

∵ P(x > 5) = 1 - P(z > -1.33)

∴ P(x > 5) = 1 - 0.09176 = 0.90824

- Change it to percentage by multiply it by 100%

∴ P(x > 5) = 0.90824 × 100% = 90.82%

90.82% of the people can complete the form in more than 5 hours

ii)

- A sample of 20 taxpayers are selected

- We need to know the probability that the sample mean is less

than 6.5 hours

- The sample means is called M

- The standard deviation of the distribution of sample means is

called σM where σM = σ/√n , where σ is the standard deviation and

n is the sample size

- z-score = (M - μ)/σM, where μ is the mean of the population

∵ μ = 6 , σ = 0.75 , n = 20 , M = 6.5 hours

∴ σM =
(0.75)/(√(20))=0.1677


z=(6.5-6)/(0.1677)=2.98

- Use the normal distribution table to find the corresponding area

of z-score 2.98

∵ The corresponding area of 2.98 is 0.99856

∵ P(x < 6.5) = P(z < 2.98)

∴ P(x < 6.5) = 0.99856

The probability that the sample mean is less than 6.5 hours

is 0.9986 (99.86%)

User JulienRioux
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