Suppose That the Average Time an Employee Takes to Reach

question 29

Essay

Suppose that the average time an employee takes to reach the office is 35 minutes. To address the issue of late comers, the mode of transport chosen by the employee is tracked: private transport (two-wheelers and four-wheelers) and public transport. The data on the average time (in minutes) taken using both a private transportation system and a public transportation system for a sample of employees are given below:

a. Considering the travel times (in minutes) of employees using private transport. Compute the z-score for the tenth employee with travel time of 29 minutes.
b. Considering the travel times (in minutes) of employees using public transport. Compute the z-score for the second employee with travel time of 29 minutes. How does this z-score compare with the z-score you calculated for part a?
c. Based on z-scores, do the data for employees using private transport and public transport contain any outliers?

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Definitions:

Bank Investments

Financial assets purchased or held by banks, including bonds, stocks, real estate, and other securities, with the aim of generating income or capital appreciation.

Leverage Ratio

The ratio of assets to bank capital.

Reserves

Assets held by a bank or financial institution, often to meet regulatory requirements or as a safeguard against potential crises.

Discount Rate

The interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility.