Brian Vanecek, VP of Operations at Portland Trust Bank, Is

question 21

Multiple Choice

Brian Vanecek, VP of Operations at Portland Trust Bank, is evaluating the service level provided to walk-in customers.Brian would like to minimize the variance of waiting time for these customers, since this would mean each customer received the same level of service.Accordingly, his staff recorded the waiting times for 15 randomly selected walk-in customers, and determined that their mean waiting time was 15 minutes and that the standard deviation was 4 minutes.Assume that waiting time is normally distributed.The 90% confidence interval for the population variance of waiting times is ________.

• A)9.46 to 34.09
• B)56.25 to 64.87
• C)11.05 to 16.03
• D)8.58 to 39.79
• E)12.50 to 42.35

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Definitions:

Indifference Curve

A curve representing all combinations of goods or services among which a consumer is indifferent, showing different combinations that provide the same level of utility to the consumer.

Expected Return

The anticipated profit or loss from an investment, taking into account the possibility of various outcomes.

Standard Deviation

A parameter that assesses the extent of difference or range within a batch of numerical values.

Risk-Averse Investor

An investor who prefers lower returns with known risks rather than higher returns with unknown risks.