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The shape of the distribution of the time required to get an oil change at a 10-

ID: 3132148 • Letter: T

Question

The shape of the distribution of the time required to get an oil change at a 10-minute oil-change facility is unknown. However, records indicate that the mean time for an oil change is 11.6 minutes, and the standard deviation for oil-change time is 3.1 minutes. To compute probabilities regarding the sample mean using the Central Limit Theorem, what size sample would be required? What is the probability that a random sample of n = 40 oil changes results in a sample mean time of less than 10 minutes? 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 40 oil changes between 10 a.m. and 12 p.m. Treating this as a random sample, what mean oil-change time would there be a 10% chance of being at or below? This will be the goal established by the manager.

Explanation / Answer

a)

We need a sufficiently large sample size. Usually, it is set at n >= 30. [ANSWER]

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b)

We first get the z score for the critical value. As z = (x - u) sqrt(n) / s, then as          
          
x = critical value =    10      
u = mean =    11.6      
n = sample size =    40      
s = standard deviation =    3.1      
          
Thus,          
          
z = (x - u) * sqrt(n) / s =    -3.264286617      
          
Thus, using a table/technology, the left tailed area of this is          
          
P(z <   -3.264286617   ) =    0.0005487 [ANSWER]

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c)

First, we get the z score from the given left tailed area. As          
          
Left tailed area =    0.1      
          
Then, using table or technology,          
          
z =    -1.281551566      
          
As x = u + z * s / sqrt(n)          
          
where          
          
u = mean =    11.6      
z = the critical z score =    -1.281551566      
s = standard deviation =    3.1      
n = sample size =    40      
Then          
          
x = critical value =    10.97184361 MINUTES   [ANSWER]  

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