Question

Geico Insurance Company conducted a survey to determine the average amount of time their customers spend waiting on hold when calling to speak to a customer service representative. Based on a simple random sample, they surveyed 58 customers. The statistics showed that customers spent an average of 7.86 minutes on hold, with a variance of 32.6. Calculate the standard error of the mean. Report your answer to 4 decimal places, using conventional rounding rules.

Answer 1

Solution :

Given that,

mean = = 7.86 minutes.

variance =  ² = 32.6 minutes.

standard deviation = = ² = 32.6 = 5.7096 minutes.

n = 58

= = 7.86 minutes.

= / n = 5.7096 / 58 = 0.7497