Calculating Probabilities for Customer Hold Times in Insurance
School
Austin O'Brien**We aren't endorsed by this school
Course
SOCIAL STUDIES SAT
Subject
Industrial Engineering
Date
Dec 10, 2024
Pages
1
Uploaded by MatePowerOtter28
6. Refer to Question 4 of Part A, in which we let��denote the amount oftime a randomly selected customer spends on hold with some insurancecompany. Suppose X follows a distribution with a mean of 8 hours and avariance of 16 hours.a. If you randomly pick 121 customers, find the probability that theaverage time spent on hold is within 1 hour of the population mean.Compare the output with the result you obtained in Question 4 (d)of Part A. (4 marks)0.99720227 - 0.002977263 = 0.994 x 100 = 99.4%Value from 4 a = 99.46%b. If you randomly pick 100 customers, find the probability that theaverage time spent on hold is at most 7 hours. (3 marks)P(X≤7)=0.006209665 x 100 = 0.62%Standard deviation = 4/√100 = 0.4c. If you randomly pick 100 customers, find the probability that theaverage time spent on hold is at least 7.5 hours. (3 marks)1-0.1056498 = 0.894 x 100 = 89.4%
