An accounting firm is planning for the next tax preparation season. From last year's returns, the firm collects a systematic random sample of 100 filings. The 100 filings showed an average preparation time of 90 minutes with a standard deviation of 140 minutes. What is the probability that a sample mean would exceed 90 minutes per filing?
A) 1.0
B) 0.5
C) 1.96
D) Cannot be calculated based on the given information.

Question

Quizplus · Accepted Answer

The probability that a sample mean would exceed 90 minutes per filing is 0.5. This is because the sample mean is exactly 90 minutes, which is the mean of the distribution of sample means (assuming a normal distribution due to the Central Limit Theorem). Therefore, there's a 50% chance that any given sample mean would be above or below this value.

An Accounting Firm Is Planning for the Next Tax Preparation