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Bones Brothers & Associates Prepare Individual Tax Returns

question 81

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Bones Brothers & Associates prepare individual tax returns. Over prior years, Bones Brothers has maintained careful records regarding the time to prepare a return. The mean time to prepare a return is 90 minutes and the standard deviation of this distribution is 14 minutes. Suppose 100 returns from this year are selected and analyzed regarding the preparation time. What is the probability that the mean time for the sample of 100 returns is between 88 minutes and 92 minutes?


Definitions:

Fixed Input

A resource in the production process whose quantity cannot easily be changed in the short term, such as buildings and machinery.

Marginal Cost

The increase in cost caused by producing one additional unit of a good or service.

Average Total Cost

The total cost of production divided by the quantity of output produced, encompassing both fixed and variable costs.

Average Total Cost

The total cost of production divided by the number of units produced, measuring the cost per unit of output.

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