A credit card company receives numerous phone calls throughout the day from customers reporting fraud and billing disputes. Most of these callers are put "on hold" until a company operator is free to help them. The company has determined that the length of time a caller is on hold is normally distributed with a mean of 2.5 minutes and a standard deviation 0.5 minutes. If 1.5% of the callers are put on hold for longer than x minutes, what is the value of x? Use Excel, and round your answer to two decimal places.

3.59 minutes

Explanation:

We solve this question using z score formula

Using Excel

Z-SCORE= (DataPoint-AVERAGE(DataSet))/STDEV(DataSet)

IN EXCEL,

AVERAGE, an excel function that calculates the Average of data set

STDEV.S: calculates the standard deviation while treating the data as a ‘sample’ of a population.

STDEV.P: This function calculates the standard deviation while treating the data as the entire population.

Z score formula = x - μ/σ

x = ?? μ = 2.5 minutes σ = 0.5 minutes

We are asked : If 1.5% of the callers are put on hold for longer than x minutes, what is the value of x?

Hence, Longer than = Greater than =

100 - 1.5%

= 100 - 0.015

= 0.985 ( 98.5%)

Using Excel we calculate = z score for 98.5 percentile

= 2.1701

Z score = x - μ/σ

2.1701 = x - 2.5/0.5

2.1701 × 0.5 = x - 2.5

1.08505 = x - 2.5

x = 1.08505 + 2.5

x = 3.58505

Approximately to 2 decimal places = 3.59 minutes

Therefore, 1.5% of the callers are put on hold for longer than 3.59 minutes.

solution:

bookmark is a word, symbol, image, or other object that links you to another element in another location.

bookmark is a saved shortcut that directs your browser to a specific webpage. it stores the title, url, and favicon of the corresponding page. saving bookmarks allows you to easily access your favorite locations on the web.

it works in all modern web browsers include bookmark features. bookmarks are called favorites or internet shortcuts in internet explorer, and by virtue of that browser's large market share, these terms have been synonymous with bookmark since the first browser war.