OM 335 Bagchi Name: SOLUTION_

Individual Homework-5

Consider the cases Quality Wireless (A) and (B). Assume that call center performance during
the month of September 2005 is continuing at the improved level with a mean of 79.50 and a
standard deviation of 16.86.

(1) What is the probability of observing ten days that average 86.6 or more? Show your work.

Let x-bardaily be the daily average hold time and x-bar10-day be the ten-day daily average hold time
(= the average of ten daily averages). We are told that in September 2005, x-bardaily is
Normal(mean = 79.5, std. dev. = 16.86). It follows that x-bar10-day is Normal(mean = 79.5, std.
dev. = 16.86/√(10) = 5.33).

So, P(x-bar10-day ≥ 86.6) = P(z ≥ (86.6 – 79.5)/5.33 = 1.33) = 0.0915.

(2) What is the probability of observing ten days that average 74.4 or less? Show your work.

P(x-bar10-day ≤ 74.4) = P(z ≤ (74.4 – 79.5)/5.33 = - 0.957) = 0.1693.